US billionaire Paul Tudor Jones issued a warning ahead of the Fed’s rate hike meeting on Wednesday. So how will the crypto market be affected by this situation?
A new one for CNBC in the interview Jones said the US economy is facing its biggest test since the 1970s. The billionaire likened the challenges facing the Fed to an ocean-going ship encountering currents in open waters.
“I think the current period is the most difficult period in the Fed’s history… We haven’t seen such a period since the 1970s. If I were to give a piece of advice to the Fed chairman, I would say, ‘Find yourself another job’. We are truly in uncharted territory. We don’t know what we will encounter. Investing is very difficult right now.”
The billionaire, who heads investment management firm Tudor Investment Corporation, says shrinking economic growth along with rising inflation poses a major test for the Fed, which is expected to raise interest rates on Wednesday. Tudor Jones also thinks the general environment is dangerous for the average investor.
“Frankly, I would never want to own stocks or bonds. There is a negative situation for both these asset classes. In my opinion, a worse macroeconomic situation cannot be imagined. Even with all these financial restraint conditions, the Fed has to raise interest rates to control inflation…”
Explaining his ideas about the future, the investor thinks that there is a generation divide regarding new technologies such as Web 3.0. In addition, he claims that “the smartest and brightest minds to come out of colleges today” are interested in cryptocurrencies.
“There is a generation split right now. There is a digital divide. And we seniors are on the other side of that divide. I see this in my children’s friends as well. Most of these kids, youngsters are into crypto, they’re into Web3. An intellectual capital is entering this field. It’s really hard not to think bullish for cryptocurrencies. Central banks and central governments, of course, will not like cryptocurrencies and do not want them to be a medium of exchange. The unlimited internet technology and ability to keep money out of the traditional side also attracts everyone. That’s why I’ve dedicated some of my investments to crypto.”
The billionaire shared the following details regarding his own investor in digital assets:
“I am a modest investment right now and I think it will have a bright future as it gets through these rate hikes. A lot of it has to do with what our central bank is doing and how serious it is about fighting inflation.”
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Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, KoinFinans and the author of this content cannot be held responsible for personal investment decisions.