According to influential investor on wall street, bitcoin may become a new indicator for the traditional stock market. This was stated by Jeffrey Gundlach (Gundlach Jeffry) investment Manager DoubleLine Capital. He said in an interview with Reuters:
«Auctions of bitcoin last week ended at the lowest level this year, the stock index S&P 500 started at a low level this week. Bitcoin continues».
Gundlaha statement echoed those comments, which he did for several months. According to Reuters, he has repeatedly stated that bitcoin leads the market, when it comes to risky assets. When the price of bitcoin plummets, bonds and stocks with high profitability are sure to follow. Gundlach also said in an interview that bitcoin «was the personification of the speculative sentiment at the end of last year,» which is now subsided. Gundlach notes:
«December’s price fall means that speculative sentiment has exhausted itself. Everything was back to normal».
The price of bitcoin reached an historical high of almost $ 20,000 in December, before abruptly fall to the level of $ 6,000. After takeoff prices throughout 2017, this year bitcoin came under the control of the bears. Gundlaha, it should be noted that investors on wall street may not be so well-versed in bitcoin, as many would like. In January, Gundlach said:
«Expectations for bitcoin overpriced. It’s just unsubstantiated asset. I have a theory that bitcoin is actually not what it seems. People think that it is completely safe and confidential, not subject to hacking, etc. it seems to Me that quite the opposite».
He also noted that he has no bitcoins and said, «This type of investment is very alien to my conservative gut.»