Crypto Exchanges

The bitcoin pullback wipes out billions in crypto





CNBC’s Brian Sullivan discusses why bitcoin is drawing back with CNBC’s Kate Rooney and Lawrence Lewitinn, Coindesk managing editor. Subscribe to CNBC PRO for access to investor and analyst insights on bitcoin and more:

DoubleLine Capital CEO Jeffrey Gundlach on Monday warned that bitcoin could be getting overheated after its massive run in recent months.

“I don’t like bitcoin here. I don’t like things that are up on a stilt like that,” the so-called Bond King said on CNBC’s “Halftime Report.” “Bitcoin, to me, is now sort of in bubble territory in terms of the way it’s been acting.”

Gundlach’s comments Monday come as the price of bitcoin was down sharply to under $33,000 per digital coin. The cryptocurrency on Friday hit a record high of nearly $42,000 before it began to pull back. Bitcoin, however, is still up over 75% in the last month and more than 380% since April 1.

The major rally in bitcoin has come against the backdrop of the coronavirus pandemic, with governments across the globe unleashing massive stimulus efforts to aid ailing economies. That has stoked inflation concerns for some investors, and bitcoin has been one asset to which they have turned.

The increased adoption of bitcoin generally by institutional investors has been another factor credited with helping propel its ascent. And some people, such as prominent value investor Bill Miller, believe the digital coin has further room to run — while conceding its volatility is likely to remain.

“Bitcoin’s total supply is growing less than 2% a year and it’s obvious by the price that the demand is growing much, much faster than that,” Miller told CNBC on Friday. “As long as that obtains, bitcoin is likely to go higher and perhaps considerably higher.”

Gundlach acknowledged there is a potential for bitcoin bulls to be proven correct.

“The people that point out it has a terrific supply-demand dynamic, if indeed institutions get involved, they’re right,” Gundlach said. “That’s what can create these massive moves up in bitcoin.”

In January 2020, Gundlach predicted near-term upside for bitcoin, potentially as high as $15,000 per coin in the year.

The investor has taken a more negative view in other instances. For example, in December 2017, Gundlach said, “If you short bitcoin today, you’ll make money.” At that point, bitcoin was trading above $16,000 per coin. It would go on to fall dramatically, losing well over half its value by December 2018.

Gundlach, in explaining his current stance toward bitcoin, said Monday he was concerned investors have become too optimistic.

“I think all of these things are kind of baked in right now, and the trade location is poor,” he said. “Even the dollar, I’ve been very negative on the dollar since January of 2017 but I actually turned neutral on the dollar a little bit lower than where we are right now … just because these things seem like they’ve gotten too deeply into the consensus narrative.”

“There’s times when … people seem to be so much on one side of the boat that I just really don’t believe the boat can sell that well,” Gundlach added, “and I believe that’s where bitcoin is on the bullish side right now.”

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43 comments

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    Reply
  2. The value of bitcoin may be lower but what will always have a high value is Kate's smile 😉

    Reply
  3. Also clean your comment section you hacks it's full of bots that are spamming a scam phone number.

    Reply
  4. I wish all these news agencies would just admit they are looking for a juicy tragedy in everything.
    This is natural fluctuation. People (and especially Korea who caused these recent changes) buy a ton and sell a ton. Anyone who "lost billions" on this is willfully ignorant in market history.
    I would be willing to wager that this same time next year BTC will be higher then ever and we will keep getting news stories like this. Bitcoin has "died" like 500 times according to these vultures.

    Reply
  5. If you follow Peter Schiff, you would not be surprised with Bitcoin

    Reply
  6. Is holo hot a good coin mate

    Reply
  7. I had a slight issue with verification, Bitvest24 demanded a clear picture of my details as opposed to the ones I kept uploading. A tiny bit stressful, but I got it done when I uploaded a crisp clear picture and it got updated right away. That's the only issue I had, and the customer service personnel was very understanding and responsive

    Reply
  8. Buy your electronic bleep with no asset base. There's a sucker born everyday.

    Reply
  9. BITCOIN AS A "STIMULUS PACKAGE".🎁⛱️🌅🌄🎉🗻🏝️🏝️🏞️🏞️🎇🎇🎇🏖️🎊. IMO.

    Reply
  10. When are people going to learn that if you don't know what you're talking about nobody cares about your opinion.

    Reply
  11. I am still waiting on someone to call me abour my money . Cyto is a scram

    Reply
  12. Kate Rooney looks like Lydia from Breaking Bad

    Reply
  13. Why don’t you talk about something helpful like best ways to buy/sell, crypto/fees…oh wait your just a useless media outlet with no actual useful information or data.

    Reply
  14. Joke. My mom bet me – who will get more in the crypt. She cheated: she found a group of professional player Walter ProfitCoin EN in the Tе-lеg-ram chan-nel. He shows how to automatically copy his actions using the service. As a result, I woeked hard, and my mother used this service, did not sit in front of the computer at all and won me over.

    Reply
  15. Joke. My mom bet me – who will get more in the crypt. She cheated: she found a group of professional player Walter ProfitCoin EN in the Tе-lеg-ram chan-nel. He shows how to automatically copy his actions using the service. As a result, I woeked hard, and my mother used this service, did not sit in front of the computer at all and won me over.

    Reply
  16. Big pullback are as good as big pumps .. set your mind for this and be ready to smile either way

    Reply
  17. All the noobs getting scared .. its alright if we go to 15 k again .. man i like my coins as cheap as possible

    If you cant stand 20 percent corection.. you are not made for this type of investment and should come back in 10 years when its way less risky .. and gives way lower reward

    Reply
  18. Just DCA .. and thats it

    Reply
  19. It aint much of a pull back after the type of run we had

    Reply
  20. I recently read a review on Revain about some altcoins. There is a risk, but it is minimal if you act wisely.🌷🌷🌷🌷🌷🌷🌷🌷🌷

    Reply
  21. Yes. It the new world currency🌷🌷🌷🌷🌷🌷🌷🌷🌷

    Reply
  22. People love free money while wearing pajamas.. wth happened

    Reply
  23. Bitcoin has never failed not minding the current fluctuation in price,rather giving people the chance to make the right investment into btc,most of the wealthy investors started there investment during this period so why not start your investment now .

    Reply
  24. Bitcoin is the future of crypto and the questions traders ask themselves now is if this is right time to invest? before jumping into conclusion i think you should take a look at things first. for the past few days the price of BTC has been fluctuating which means the market is currently unstable and you cant tell if it is going bearish or bullish. while others still continue to trade without the fear of making lose, others are being patient. it all depends on the pattern with which you trade and also the source of your signals. i would say trading has been going smoothly for me after accumulating over 8.5 BTC in just two weeks, with the trading strategy given to me by Mr Samuel jeff. His methods are top notch and profitable and he can be contacted easily on WhatsApp +1 (6 5 0 )3 0 0 7 4 0 6 cheers.

    Reply
  25. Dogecoin is the way to go

    Reply
  26. Why is this news? Just look at the weekly chart, it's just a blip, a standard-issue regular pulse, like that of any other price chart in existence. The naïveté is staggering.

    Reply
  27. Lol.. Everyone who know about Crypto Market was expecting a Pull back… Its normal in Crypto Markets…

    Reply
  28. Sorry for the dump folks I was just taking some profits….lime green Lambo's don't pay for themselves

    Reply
  29. Coinbase sucks

    Reply
  30. Breaking news: Crypto dips to levels not seen in 11 days!

    Reply
  31. Well if you think the best way to profit from bitcoin is by holding then you're wrong, I make at least 0.3 btc every week trading with Patterson software

    Reply
  32. He's a member of the mafia that manipulates the crypto market.
    It's a Ponzi Scheme

    Reply
  33. "Profit Taking".. . LMAO. What spin. 😂

    Reply
  34. Whose comments didn't help?

    Reply
  35. Scam

    Reply
  36. This drop is again manipulation with price from Coinbase.

    Reply
  37. Its not wiped out if you dont sell

    Reply
  38. Bitcoin is going to zero very soon

    Reply
  39. Yeah big deal it just pulled back to its last week's price…

    Reply
  40. SELL SELL SELL, shitcoin is going to zero

    Reply
  41. Telling me or me reading that the dollar is worth more suddenly doesn't make me sell bitcoin. Only a moron would do that.

    Reply
  42. Billions lol crypto ready to dabble in the Trillions

    Reply
  43. The major challenges investors face may range from controlling impulsiveness to the frail of compulsion. Most newbies and would-be investors often undermine and most often neglect the importance of technical analysis with regards to trading. Technical analysis overly predicts the movement of asset prices regardless of what is happening in the wider or broader market. Essentially, the process involves studying the paths of a particular asset movement in the past so as to establish a sustainable pattern that can be used to predict future movements. I would encourage investors out there to trade with the little they have or copy trade alerts from a professional trader. I have been using Kevin Cischke trading Signaler and Strategy Designer since the last bear market, increasing my portfolio daily. With his strategy/signals, i have been able to grow my portfolio to 5.2 btc with my initial 0.8 btc. Kevin makes you learn while earning massively. He can be contacted via telegram @ Kevincischke for crypto related concerns.

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