Bitcoin comes out of the weekend with a pump into the $40,000 resistance area. At the time of writing, the first cryptocurrency by market cap trades at $40,540 with a 13.5% profit in the daily chart.

Over the past week, BTC’s price action was determined by a persistent downtrend after a massive sell-off during May. Fear took over the market, as uncertainty in BTC’s price course predominated.

Legendary investor Paul Tudor Jones has the opposite feeling towards Bitcoin. Almost a year ago, Tudor Jones compared the first cryptocurrency by market cap with gold and claimed he was going to used BTC as a store of value.

The legendary investor published a research note titled “The Great Monetary Inflation”. At that time, he was concerned about the U.S. Federal Reserve’s “infinite money” policy. Those worries have persisted, as Tudor Jones showed in a recent interview with CNBC.

He believes “things were crazy then (when he first got into BTC) and I think they are crazy now”. The legendary investors see BTC as the only certain investment in an otherwise uncertain world. He added:

I like $BTC.  BTC is math & math has been around for thousands of years.  I like the idea of investing in something that’s reliable, consistent, honest & 100% certain. BTC has appealed to me because it’s a way for me to invest in certainty.

Last year, when the Covid-19 pandemic forced most of the western world to shut down, central banks around the world responded with intervention. In that context, Tudor Jones compared Bitcoin’s network with the FED policies and made an important distinction: the former operates on certainty and the latter on faith.

Similarly, investors must have faith in the U.S. administration, elections, and human nature. Tudor Jones wondered: “Do I wanna have faith? In the reliability and consistency of human nature and its lineal nature. We know it’s everything but that”.

Thus, the legendary investor sees BTC as a portfolio diversifier and will keep a 5% position in the cryptocurrency, 5% in cash, and 5% in commodities. The 80% remaining will be allocated to other investments after the U.S. FED decides “what they are gonna do because what they’ll do will have a big impact”.

On Wednesday, the financial institution will have its two-day meeting. Therein, the FED could “make tweaks to its forecasts for interest”, CNBC reported. Thus, there is great expectation in the market.

If the FED doubles down on the “inflation trade”, Tudor Jones will increase his position in Bitcoin, gold, and other commodities.

Tudor Jones was not all pro-BTC and said that if he were “king of the world”, he would BTC mining sector due to its alleged environmental impact. However, his concerns over the current economic policies make him think the world is in an extraordinary situation and those required extraordinary measures.

"If I was king of the world I would ban #bitcoin mining," said legendary trader @ptj_official on #BTC's environmental impact. pic.twitter.com/FvmpMpV3fK

— Squawk Box (@SquawkCNBC) June 14, 2021

Similar to Notcoin - TapSwap on Solana Airdrops In 2024

origin »

187 +