After three weeks of being stuck below the USD 40,000 level, bitcoin (BTC) finally broke it and went even higher. Meanwhile, famous hedge fund manager Paul Tudor Jones says he certainly wants 5% of his portfolio in BTC.
BTC surpassed USD 41,000 today before correcting lower. At 14:49 UTC, BTC trades at USD 40,956 and is up by 14% in a day and a week, trimming its monthly losses to 18%.
As BTC was pushing upwards, billionaire hedge fund manager Paul Tudor Jones said that he’s keeping an eye on this week’s Federal Reserve policy meeting, according to CNBC. Depending on their response to the economic data showing higher consumer prices, Jones may invest in cryptoassets as well, saying:
“If they treat these numbers […] with nonchalance, I think it’s just a green light to bet heavily on every inflation trade. […] If they say, ‘We’re on path, things are good,’ then I would just go all in on the inflation trades. I’d probably buy commodities, buy crypto, buy gold.”
What’s more, among the crypto, Jones singled out bitcoin as a great way to protect his wealth long-term, and as a store of wealth. And while he may not know what to do with 80% of his portfolio until he sees what moves the Fed plans to make, as for the other 20% he said:
“I like bitcoin as a portfolio diversifier. Everybody asks me what should I do with my bitcoin? The only thing I know for certain, I want 5% in gold, 5% in bitcoin, 5% in cash, 5% in commodities.”
As reported, just over a year ago, in May, Jones said that “over 1% […] maybe it’s almost 2%” of his assets are in bitcoin.
If the officials “course correct, if they say, ‘We’ve got incoming data, we’ve accomplished our mission or we’re on the way very rapidly to accomplishing our mission on employment,” said Jones, then there’ll be a taper tantrum, a sell-off in fixed income, and a correction in stocks, which “doesn’t necessarily mean it’s over.”
Meanwhile, the US Federal Reserve officials could signal on Wednesday that they anticipate raising interest rates sooner than previously expected, after high inflation readings, reported the Wall Street Journal. Barclays Bank PLC now expects annual inflation, measured by the Fed’s preferred gauge, to hit 3.6% in the fourth quarter, which is nearly double the central bank’s target.
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Source: Cryptonews
