Billionaire hedge fund manager Paul Tudor Jones says the Fed’s 12-month rate game is over. He also sees US regulators’ crackdown on the cryptocurrency market as a “real problem”.
“Now this game may be over”
The cryptocurrency market started the new year on a positive note. But Paul Tudor Jones, one of the world’s most famous investors, predicts a “confluence” due in part to the loss of confidence in the US dollar and banking system triggered by the Fed’s historic string of rate hikes.
Bitcoin this month hit the heights of recent months as the US revealed a secret Democratic plan for crypto crackdown. Jones believes the Fed is now at the end of its 12-month rate hikes. The famous billionaire hints at this point that Bitcoin will no longer be as prominent as before.
“If inflation really exists, if this story has been played out, then you have to wonder,” Jones told CNBC. We used to buy gold and Bitcoin to avoid inflation. Now this game may be over.”
“I will always stick to cryptocurrencies for diversification in my portfolio”
Last week, data showed that US consumer inflation fell to a two-year low after the Fed raised interest rates ten times in a row last year, pushing them to their highest levels since 2007.
US inflation peaked at 9.1% in June last year. Thus, it saw its highest level since 1981. However, Fed chairman Jerome Powell and other top officials were hesitant to declare victory in their battle against inflation as higher prices continued far beyond their previous expectations.
Jones called Bitcoin “the fastest horse to beat inflation” in 2020. Now, he says he will continue to hold “small” amounts of Bitcoin.
“From the beginning, I always said I wanted to have a small stake,” Jones said. Because that’s the only thing people can’t adjust the supply for. That’s why I’m sticking with it. “I will always stick to cryptocurrencies as a little diversification in my portfolio.”
Increasing pressure in the US is a “real problem” for the cryptocurrency market
Meanwhile, Jones warned that the increasingly tough regulatory stance against Bitcoin is the “real problem” in the US.
The crypto industry in the US has complained that politicians are quietly putting pressure on the crypto industry and forcing it to unofficially exit the banking system through what has been dubbed “operation choke point 2.0”.
The 2022 crypto market crash wiped out nearly $1 trillion from the cryptocurrency market. The main cause of the collapse was high-profile bankruptcies such as Terra and FTX. Therefore, US regulators and legislators are now tougher than ever on crypto. However, the SEC is taking action against many of the biggest crypto companies. As Kriptokoin.com, we reported the Tron and Binance cases in March.
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