Bitcoin has faced a huge relapse, with a succession of undesirable news making headlines this year.It started at $4500 and went as high as nearly $20,000. But the month of January gave it a hard time after an unexpected collapse. However, even though it crashed, Bitcoin has now made an effortless comeback and stabilized to normalcy.
Jeffrey Gundlach, founder of Double Line Capital, firmly believes that it is Bitcoin’s financial status which will determine the stock market,as he said, “Strangely, bitcoin seems to be the poster child for social mood and market mood We had a vertical rise from Sept. 7 which was led and epitomized by bitcoin. Bitcoin started at about $4,500 and went up to about $20,000 or so.”
Bitcoin’s stunning business in December and the sudden crash in January, came as a warning for the stock market’s fall. He also told CNBC’s Halftime Report that,“ If stocks are going to take another tumble, I think it would be preceded by a bitcoin decline.”
Stock market’s unpredictability was stirred up with S&P 500,Dow Jobs Industrial average and Nasdaq composite, dropping down to the correction mark. By then, Bitcoin has gained back some of it’s ruins and came up on an amount between $8000 and $10,000. Bitcoin,the new-age digital asset of the world, has been set as a guide, to know what the future of stocks are going to be.
Often referred to as the “bond king”, Jeffrey Gundlach, was found expressing his doubts how wages can make a sudden increase without showing much inflation.
Stock market’s stimulation from inactive state, right after Bitcoin rose back from the dead, makes him strongly believe that if the stocks are to face another downfall, the storm shall pass through Bitcoins at first.
Well, we hope Mr Jeffrey’s analysis is not just based on sheer speculation but a statement of informed statistics.