The era of low volatility is over and it's stock market investors who will have to pay, "bond king" Jeffrey Gundlach said Wednesday.

Rising bond yields and the plunge in cryptocurrencies like bitcoin are providing signs that have led Gundlach to expect stocks to end the year in negative territory.

The DoubleLine Capital founder conceded that his bet against the market suffered in December and January, "but it was so obvious to me that bitcoin is the dot-com of our world today, and this mania is so similar to where we were in 1999."

In addition to betting against stocks generally, Gundlach has been long equities in his flagship fund as he expects the return of volatility to change the investing landscape.