“Strangely, bitcoin seems to be the poster child for social mood and market mood,” Gundlach, the founder of DoubleLine Capital, told CNBC’s “Halftime Report” on Friday. “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 peaked out in mid-December and it crashed. That sort of presaged the volatility in the stock market,” he said, noting the cryptocurrency has stabilized recently.
“If stocks are going to take another tumble, I think it would be preceded by a bitcoin decline.” Stock-market volatility was reawakened from its dormant state earlier this month, with the S&P 500, Dow Jones industrial average and Nasdaq composite briefly dipping in correction territory.
Meanwhile, bitcoin has stabilized between $8,000 and $10,000 since Feb. 8, according to Coindesk. Read more from cnbc.com…
thumbnail courtesy of cnbc.com