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Billionaire investor Jeff Gundlach says Bitcoin to fall under $10,000 citing crypto market “blow-ups”

Billionaire investor, Jeff Gundlach, told CNBC that he wouldn't be surprised if bitcoin dropped to $10,000. He cited recent "blow-ups" in crypto which have contributed to bitcoin's drop to just above $20,000.

In an interview with CNBC on June 16, Jeff Gundlach, co-founder of mutual fund company, DoubleLine Capital, talked about the recent crypto market crash and the Federal Reserve rate hike’s effect on the crypto market. The billionaire investor Gundlach pointed to recent “blow-ups” in the crypto sector as the catalyst for the second crypto market meltdown this year. 

Gundlach remarked:

“We’ve already seen around the edges some blowups in parts of the crypto world, and that could be foreshadowing some problems.” 

Billionaire investor Jeff Gundlach warned that he won’t be surprised if Bitcoin falls below $10,000. Following a succession of “blow-ups” that have raised concerns about the stability of crypto markets. 

Bitcoin, the world’s largest cryptocurrency, has dropped to 18-month lows and threatened to break below $20,000 this week. However, after the Federal Reserve raised the benchmark interest rate by 75 basis points, crypto markets saw a slight improvement. Gundlach told CNBC in a “Closing Bell” interview on June 15, referring to the $30,000 and $20,000 levels:

“When it broke below $30, it looked on a chart basis that $20 was going to happen quickly, and it did. The trend in crypto is clearly not positive, It looks like it’s being liquidated. I’m not bullish at that $20,000 or $21,000 on bitcoin. I wouldn’t be surprised at all if it went to $10,000.”

The price collapse of terraUSD in May shattered investors’ confidence in the crypto industry’s stability. The Terra collapse added pressure on bitcoin and the whole crypto market. Recently, renowned crypto lending firm Celsius Network also halted all withdrawals and transfer activities among its users, citing “extreme market conditions and volatility.” The suspension has raised fears among Celsius users that the firm is on the verge of bankruptcy, as evidenced by the company’s reported move to seek restructuring lawyers to assist with its escalating financial problems.

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Vaishali Goel
Vaishali Goel
Technology enthusiast, explorer and academic scholar. Currently exploring the crypto world. Join me in my journey to see how crypto, NFT and Metaverse will change the world.
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