Famous billionaire, Jeffrey Gundlach, has admitted that despite being long-term bullish on Gold and bearish on the US dollar, that Bitcoin (BTC) would be a better “stimulus asset.”

However, Gundlach, also known as the “Bond King,” has remained neutral on both assets over the past half-year. As he states, this is due to excessive cash being poured into the financial system during the Covid-19 pandemic.

Meanwhile, amidst BTC’s spectacular performance, the world’s leading cryptocurrency may attract global stimulus in a more efficient way, rather than Gold.

I am a long term dollar bear and gold bull but have been neutral on both for over six months. Lots of liquid poured into a funnel creates a torrent. Bitcoin maybe The Stimulus Asset. Doesn’t look like gold is.

Back in 2017, Jeffrey Gundlach claimed that the growing interest in Bitcoin was a “mania” he preferred to stay away from, “Maybe I’m just too old, but I’m just going to let this mania go on without me,” he said.

In November 2020, Gundlach remained adamant, emphasizing that he didn’t believe in Bitcoin’s credibility:

“I think that it’s a lie. I think that it’s very tracked, traceable. I don’t think it’s anonymous.”

Nevertheless, he couldn’t but change his attitude towards the flagship cryptocurrency as the global economic recession rolls on. Bitcoin was among the first assets to recover from the notorious market collapse on Mar. 13, 2020. During Rosenberg Research’s webcast series in Nov 2020, the bond giant agreed that BTC could be a useful hedge against inflation. 

Speaking with CNBC in Jan 2021, Gundlach said that he changed his stance on Bitcoin to neutral once it hit $23,000. But he nevertheless insisted that it’s still in “bubble territory,” and the BTC rally has gained momentum all too fast. At the same time, he added that Bitcoin would have a “terrific supply and demand dynamic” if institutions step in.

Gundlach, who is also the CEO of DoubleLine Capital, appears to have changed his mind completely. Bitcoin demand from financial institutions has been notably significant. 

One of the biggest cryptocurrency whales, Grayscale, has already accumulated 150% more BTC in January and keeps growing its stash. Over the past month, it has added over $1 billion in BTC and currently owns around 650,000 coins.

Grayscale have added 20,970 #Bitcoin worth $1.09 billion over the past 30 days

Another publicly-traded company MicroStrategy is well on its way to hoarding more bitcoin after it announced another $10 million purchase in early February. At press time, its BTC holdings are worth more than $3.5 billion.

Fintech giants are supporting this trend, catapulting the bitcoin price to $52,000. In the past two weeks alone, the list of companies diving into the space includes PayPal, Visa, and Mastercard. Fintech lender Affirm is about to turn to crypto as well, as its CEO Max Levchin follows Elon Musk and joins the ranks of investors captivated by BTC. 

Even Wall Street Banks acknowledge the need to contend with Bitcoin, as the institutional pressure from both inside and outside is becoming more intense.

The post Bitcoin Skeptic Jeffrey Gundlach Sees BTC as the Better ‘Stimulus Asset’ appeared first on BeInCrypto.

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