Billionaire Paul Tudor Jones Says Bitcoin Is Less Attractive Now, Here's Why
Renowned billionaire and hedge fund manager Paul Tudor Jones seems to be navigating away from Bitcoin as a safeguard against inflation, suggesting that the flagship digital asset has lost some of its luster.
The main drivers behind his apparent U-turn are the current ebb in inflation and the relentless tidal wave of regulatory scrutiny.
During a Monday interview with CNBC's "Squawk Box," Jones revealed that he still maintains a small stake in Bitcoin, but its appeal has diminished somewhat.
He expressed concerns over the U.S. regulatory apparatus, stating, "Bitcoin has a real problem because, in the United States, you have the entire regulatory apparatus against it."
Godfrey BenjaminNo more rate hikes?
Jones also offered his insights on the state of the U.S. economy, indicating that he believes the Federal Reserve has concluded its rate-hiking campaign. He suggested that the central bank might have "done too much" in its fight against inflation, which he noted has been declining for the past 12 months.
With inflation having been on a downward spiral for a year, he implied that the Fed's victory lap might not be too far off, acknowledging the tightrope they have to walk in steering the economic ship.
Vote of confidence
The news of Jones dipping his toes into the Bitcoin pool first surfaced in May 2020, a move seen as a resounding endorsement of the leading cryptocurrency. In a note to his clients, he equated investing in Bitcoin to buying gold in the 1970s, forecasting a surge in inflation as a consequence of the Federal Reserve's response to the economic blow dealt by the global pandemic.
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