DoubleLine Capital CEO and billionaire investor Jeffrey Gundlach delivered a scathing critique of Bitcoin during a CNBC interview following the Federal Reserve's January 2026 policy meeting. Gundlach dismissed Bitcoin as "hype," contrasting its performance with gold, which he noted has surged 90% over the past 12 months while Bitcoin's price has declined over the same period. He framed this shift as a move away from speculative digital assets toward tangible ones.
Gundlach quoted investor Jim Grant's perspective on gold, stating, "The price of gold is the reciprocal of investors’ confidence in central banking." This comment underscores his view that declining faith in central bank management is driving capital into traditional safe havens.
The interview occurred after Fed Chair Jerome Powell held the benchmark interest rate steady in a range of 3.5% to 3.75%. Gundlach characterized Powell's press conference as uninformative, summarizing it with Powell's repeated line: "I got nothing for you on that." Based on this, Gundlach predicted the Fed would enact no further rate cuts during Powell's remaining two scheduled meetings in 2026.
Gundlach also made a bold declaration about the U.S. dollar, arguing it has lost its status as a safe-haven asset. He pointed out that during all 12 S&P 500 corrections since the year 2000, the dollar appreciated 8%-10%. However, during the market correction in March-April 2025, the dollar fell by 8%-10% instead. He attributed this structural change to growing concerns over U.S. national debt and long-term fiscal issues, a weak-dollar view he has maintained for approximately two years.
Persistent inflation remains a key concern, according to Gundlach. He highlighted that inflation is still well above the Fed's 2% target, with the five-year average at 3.9% and the GDP deflator running above 3%. He illustrated the long-term impact, noting that 3% inflation over 15 years leads to a 56% price increase, compared to only 35% at a 2% rate.
For the crypto market, Gundlach's commentary presents a direct challenge to Bitcoin's "digital gold" narrative. His analysis suggests a macroeconomic environment where capital continues to favor physical gold over risk assets like Bitcoin, potentially testing the cryptocurrency's store-of-value proposition throughout 2026.
