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Gundlach Sees a 25% Upside in Bitcoin, Still Advises to Get Out

Annie Gilroy
Gundlach Sees a 25% Upside in Bitcoin, Still Advises to Get Out

Most of Gundlach’s 2018 Calls Were Spot On—What about 2019?(Continued from Prior Part)## Gundlach called Bitcoin’s crashJeffrey Gundlach correctly called Bitcoin’s (BTC) crash after the cryptocurrency’s peak in December 2017. Gundlach compared Bitcoin’s (XBT) movement with the dot-com bubble. He said, “It was so obvious to me that bitcoin is the dot-com of our world (SPY) (VTI) today, and this mania is so similar to where we were in 1999.” He added, “Bitcoin very clearly leads risk assets.”## Other investors on BitcoinGundlach isn’t the only prominent investor who is critical of Bitcoin. Warren Buffett, Berkshire Hathaway’s (BRK-B) chair, has been critical of cryptocurrencies. Last year, he called Bitcoin “rat poison squared.” He also said, “In terms of cryptocurrencies, generally, I can say with almost certainty that they will come to a bad ending.”## Gundlach: 25% upside in BitcoinHowever, in contrast to his view on Bitcoin for 2018, Gundlach predicted that Bitcoin could easily rise 25% and return to the $5,000 price point. However, he still doesn’t recommend making any moves on Bitcoin. As reported by CNBC, he said, “I don’t recommend anything with bitcoin, really … but if you really want to speculate, I think it could make it to $5,000. Talk about an easy 25 percent.” He also advised investors to “get the heck out of bitcoin.”Browse this series on Market Realist: * Part 1 - Most of Gundlach’s 2018 Calls Were Spot On—What about 2019? * Part 2 - Jeffrey Gundlach: How to Survive the Market Zigzags in 2019 * Part 3 - Gundlach: Junk Bond Market Is Flashing Yellow on Recession