Billionaire hedge fund manager Paul Tudor Jones has reaffirmed his positive outlook on bitcoin despite regulatory hurdles in the US and amid ongoing discussions about inflation.
Investor and billionaire Paul Tudor Jones reiterated his positive view of bitcoin (BTC) on CNBC’s “Squawk Fund,” despite intense regulatory scrutiny within the United States. He emphasized the unique feature of bitcoin of having a fixed supply that cannot be affected by human actions, which enhances its value proposition.
In a conversation with Aaron Ross Sorkin, Jones drew attention to the potential of bitcoin as a safeguard against inflation. The pair reflected on the extension of quantitative easing and fixed interest rates throughout 2021, and how these monetary policies affected the bank failures that occurred in 2023.
Jones suggested that the Fed’s messages, which downplayed the risk of inflation, inadvertently encouraged financial institutions to lengthen maturities. This, in turn, caused adverse effects when inflation inevitably materialized.
Contrary to the Fed’s assertions, inflation was far from fleeting, as evidenced by the Consumer Price Index (CPI) reaching a 40-year peak of 9.1% in June 2022. This economic turnaround was reflected in the value of Bitcoin, which fell to Low of $18,999.95 on July 13, 2022 – the day the June CPI report was revealed.
However, Jones also noted that the practice of turning to bitcoin and gold as an inflation hedge could lose its appeal if market prices start to show signs of moderating.
He also mentioned the inherent risks associated with bitcoin, especially the strict regulatory landscape in the United States. Jones noted that the growth and stability of the cryptocurrency could face significant hurdles due to these regulatory restrictions.
(embed) https://www.youtube.com/watch?v=qIyYOc-sUSI (/embed)
The interview captured attention as he speculated about the possibility of a recession in the US by the third quarter. This forecast is based on recent financial events which, according to him, indicate a looming economic slowdown.
However, amid these uncertainties and potential risks, Jones remains steadfast in his support for Bitcoin. He intends to keep his small allotment in the cryptocurrency.