Paul Tudor Jones, a well-known billionaire and hedge fund manager, appears to be steering clear of Bitcoin as a hedge against inflation, indicating that the leading digital currency has lost some of its allure.
His apparent U-turn is primarily being motivated by the recent dip in inflation and the never-ending tidal wave of regulatory scrutiny.
In a Monday appearance with CNBC’s “Squawk Box,” Jones disclosed that while he still has a little investment in Bitcoin, its attraction has considerably decreased.
He voiced worry about the American regulatory system, saying that “Bitcoin has a real problem because you have the entire regulatory apparatus against it in the United States.”
The billionaire is not prepared to cut all links with Bitcoin, though. He still finds cryptocurrencies to be an attractive asset class, and he attributes this to the fact that human interference cannot be used to control their supply. He emphasised, “I am staying with it and I always will continue with it since it is the one thing that people cannot change the supply in. It just slightly diversifies my portfolio. Investors frequently use this diversification method to lower risk.
No more rate hikes?
Jones shared his opinions on the status of the American economy and said he thought the Federal Reserve was finished raising interest rates. He said that the central bank may have “done too much” to combat inflation, which has been falling over the previous 12 months, and hinted that this may have been the case.
He said that the Fed’s victory lap could not be too far off given that inflation has been on the down for a year, while also admitting the fine line they must tread while guiding the economy.
Vote of confidence
First reported in May 2020, the news of Jones dabbling with Bitcoin was viewed as a strong endorsement of the most popular cryptocurrency. He compared purchasing Bitcoin to purchasing gold in the 1970s in a message to his investors, and he predicted a rise in inflation as a result of the Federal Reserve’s reaction to the economic blow caused by the worldwide epidemic.
