In a Tuesday afternoon tweet, Gundlach noted that bitcoin has doubled in less than 2 months, while the Shanghai composite has fallen "almost 10%" over the same time period. In contrast, most major indexes have climbed so far this year — the MSCI World Index is up nearly 8.8 percent.
The theory is the Chinese search for safe investments outside the country when asset prices fall sends buyers into bitcoin. The Chinese yuan's weakness in the last two years has also contributed to capital flight.
However, now more than just Chinese investors are driving bitcoin's price. Gundlach isn't wrong — there's just more to the story.