During an appearance Tuesday on CNBC’s “Squawk Box,” billionaire hedge-fund manager Paul Tudor Jones shared his latest market insights, while also claiming that inflation trading would be thwarted. challenge when co-host Andrew Ross Sorkin asked about Bitcoin:
You have to watch what the central bank does. It is clear that the inflation traders of the pandemic era will be challenged now.
“All clear #inflation the transactions of the pandemic era will be challenged now,” @ptj_official above #crypto #bitcoin. “Things that performed best since March 2020 are likely to perform the worst as we go through this tightening cycle.” pic.twitter.com/paOXucYG2B
– Squawk Box (@SquawkCNBC) January 11, 2022
The longtime investor says it will be “difficult” for assets seen as an inflation hedge, adding that the best performers since March 2020 “probably” will perform badly. worst of the ongoing tightening cycle.
That said, he cannot accurately predict whether these assets will go down or up on a relative basis.
Jones initially revealed that he bought Bitcoin as a hedge against inflation in early May 2020. The endorsement of the investment legend is seen as a big win for the biggest cryptocurrency.
In October 2020, when Bitcoin was just preparing for a new bull run, Jones said that the cryptocurrency was only in its first session.
Bitcoin has rallied more than 630% since Jones revealed his position, peaking at around $69,000 in November 2021.
In October, Jones noted that cryptocurrency has won the race against gold as the world becomes increasingly digital.
In July, he was named among investors in the massive $900 million Series B funding round of exchange FTX.
Talking about his outlook for the US Federal Reserve, the investor said Chairman Jerome Powell is now playing catch-up:
I think Jay Powell will play catch-up… He has a lot of work to do. And I think that’s why you see them talking about quantitative tightening because I don’t think he can catch up fast enough. He’s trying to deal with the inflation problem he’s having right now.
He compared the current state of the market to “Animal House,” a 1978 comedy directed by John Landis:
I feel in relation to the market it’s like a bit… Remember in ‘Animal House’, where right before the scene with Deathmobile, one of the men… all sat around and the guy said: ‘ It’s over, buddy. Wormer just dropped a big one. ‘
He drew parallels between the landscape and the big shift in Fed policy, saying it would have “a lot of consequences” for a variety of asset prices.
Follow u.today