Billionaire and hedge fund manager Paul Tudor Jones has indicated that Bitcoin has recently become less attractive as a safeguard against inflation, pointing to declines in inflation as well as the current regulatory climate as a factor. Despite this, he still holds a small stake in the asset, apparently captivated by its non-manipulatable supply. Jones suggested that the Federal Reserve might have "done too much" to curb inflation, noting that it has been on a downward trend for the past twelve months. This observation was made in a Monday interview with CNBC's "Squawk Box".

The news of Jones investing in Bitcoin initially came to light in 2020, painting a positive outlook for the leading cryptocurrency. In a letter to clients, he likened buying Bitcoin to investing in gold during the 70s, predicting an inflation surge as a result of the Federal Reserve's response to the pandemic. He then immutably stated his adherence to Bitcoin as a part of his diversification strategy.

Jones' opinion suggest the power the Federal Reserve wields to directly affect inflation and currency values, while reiterating Bitcoin's purported tie to the phenomenon. As inflation continues to trend downwards, its impact on the digital asset's popularity is becoming more apparent. This constitutes a potentially influential dynamic between two highly consequential variables; the economy, and the future of cryptocurrency.



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