Famous hedge fund manager Paul Tudor Jones, who participated in CNBC’s Squawk Box, shared his thoughts on Bitcoin and the crypto market.
Jones, CEO of Tudor Investment, said that these days of high inflation woes will be tough for assets like Bitcoin, which is seen as an inflation hedge and has been performing perfectly since March 2020.
“We have to look at what the central bank is doing. Clearly, the inflation traders of the pandemic era will be challenged right now. Assets like Bitcoin are likely to have their worst days.”
The famous investor also stated that it is difficult to accurately predict whether volatile assets such as Bitcoin will go up or down in an inflation-fighting environment.
Expressing that Fed Chairman Jerome Powell will struggle to control rising inflation, Jones said that he thinks various assets will face difficulties as a result.
“I think Powell has a lot to do. And I think that’s why you see them talking about quantitative tightening. The Fed is trying to deal with the inflation problem it has right now.”
Noting that inflation will not be temporary in his previous statements, the famous manager announced that he had purchased Bitcoin as a precaution against inflation in early May 2020.
“Clearly all the #inflation trades of the pandemic era are going to be challenged right now,” says @ptj_official front #crypto #bitcoins. “The things that performed the best since March of 2020 are going to probably perform the worst as we go through this tightening cycle.” pic.twitter.com/paOXucYG2B
— Squawk Box (@SquawkCNBC) January 11, 2022
*Not investment advice.