In an interview for CNBC’s Squawk Box, Legendary investor Paul Tudor Jones talked about Bitcoin, the U.S. Federal Reserve, and the most “just” companies in that country. Tudor Jones has been a BTC bull for a couple of years, but a chance in the FED’s monetary policy might have altered his view.
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As Bitcoinist reported back in October, the legendary investor called Bitcoin a better hedge against inflation than Gold and other traditional investments. In addition, Tudor Jones dismissed the FED Chair Jerome Powell’s comments about inflation, the government official claimed it was transitory, and predicted an inflationary economic outlook, at the time he said:
There is a combination of structure and cyclical forces that right now are all going in the same direction to say that inflation could be much worse that what we fear.
Although the most recent Consumer Price Index (CPI) metrics are within market expectations of 7% year-over-year, it still stands at a 40 year high. Thus, the U.S. financial institution has turned hawkish and seems willing to hike interest rates in an effort to reduce rising inflation which could in turn impact Bitcoin and risk-on assets.
In his most recent prediction, Tudor Jones said the FED Chair will “play catch up” in the coming months. In that sense, he expects a “major shift” in FED policy and, as a consequence, there will be a ripple effect across global markets. The legendary investor said:
Clearly all the inflation trades of the pandemic era are going to be challenged right now. The things that performed the best since March of 2020 (such as Bitcoin) are going to probably perform the worst as we go through this tightening cycle.
The U.S. Versus China, Why Bitcoin Is The Third Option
Tudor Jones concluded his interview by praising the U.S. capitalist system as opposed to China’s. In his view, the western country is a more dynamic system comprised of a “contest of ideas” that give them an advantage over “the rest of the world”.
Still, he displayed concern about the possibility that the FED could unwind “huge negative financial consequences” with their shift in policy. Tudor Jones added:
If you were going to make a bet on the economy for the future, clearly, you’d bet it here in the United States rather than any other country in the world. Yet, I’m nervous because we’re at such lofty heights.
Conversely, many experts, like Tudor Jones, believe Bitcoin will see a challenge in 2022 as the U.S. financial institutions prepare to tight in their actions. In addition, the crypto industry as a whole could face regulatory pressures coming in from Washington and other political capitals around the world, including Beijing.
The benchmark crypto remains the only alternative for those looking to op out of the China versus U.S. cold conflict, and preserve their wealth amidst a potential global financial crisis with never before seen complexities.
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As of press time, Bitcoin (BTC) trades at $43,947 with a 4.5% profit in 24-hours as it positively reacted to the CPI print disclosed earlier.
