Billionaire investor Jeff Gundlach has warned of recession in the coming months and said that bitcoin was massively overvalued. He has advised against buying the cryptocurrency at the current level.

The price of bitcoin has fallen from the peak of $67000 in November to under $42,000 at present.

"Bitcoin is for speculators at the present moment. I would advise against buying it. It will be volatile as people get out. Maybe you should buy it at $25,000," said the “bond king” in an interview with Yahoo Finance on Saturday.

Noting that he has never invested in bitcoin, Gundlach said, “That’s just not in my DNA.” The billionaire investor said that bitcoins were for momentum investors only and that bonds fit his culture better than the digital currency.

The Doubleline Capital CEO also said that the US was staring at a recession in 2023. The bond market has been given enough indicators that make recession likely in 2023, he said.

>>Also Read: All about Norton 360 antivirus that comes with built-in cryptocurrency miner

According to Gundlach, many officials of the Federal Reserve, economists and investors fail to appreciate the fact that the economy buckles at lower interest rates. “I think the Fed only has to raise rates four times and you’re going to start seeing a plethora of recessionary signals,” he warned, adding that it is possible that US may face recession in the later part of 2022 itself.

On Monday, Jamie Dimon, CEO and chairman of JPMorgan Chase, said that with the economy generating inflation, the Fed may have to hike short-term interest rates more than four times in 2022. Four rate hikes would be very easy for the economy to absorb, he said.

Recession stems from weakness in demand, but the downturn can also be triggered by supply problems, a Forbes report said earlier. With enough money in the hands of consumers powered by stimulus payments and extra unemployment insurance, demand for goods and services will be strong in 2022, it said.

>>Also Read: How this man mines up to $800 a month in crypto using his Tesla