Reuters / Eduardo Munoz
- Bitcoin will continue to rise in October as investors begin to cut tokens as a hedge of inflation, billionaire investor Paul Tudor Joan said Thursday.
- The world’s largest cryptocurrency has risen nearly 20% this month and recently rallied above 13,000 for the first time since July 2019.
- Bitcoin will act as “the best trade of inflation” as the Federal Reserve decides to raise prices above 2% in the future, Jones told CNBC.
- Betting on cryptocurrencies is also like investing early in tech behemoths like Apple Pal or Google, he added.
- Watch the Bitcoin trade live here.
Bitcoin has only recently reached its highest level since July 2019, and hedge-fund manager Paul Tudor Jones expects inflationary trends to push digital tokens as well.
The world’s largest cryptocurrency has risen nearly 20% this month after breaking key psychological levels and getting approval from the financial-industry titans. The Bitcoin rally on Wednesday saw the intraday high of $ 13,229.37 before crossing the gap above its 2020 high.
Cryptocurrency hovered below 13,000 dl on Thursday, and the rally is still in its “first inning”, Joanne told CNBC on Thursday. He said the Federal Reserve’s updated policy framework would offset the short-term overshoot of its 2% inflation target, slowing the pace of price growth. Investors in the new strategy are looking for new inflation hedges as the economy improves, and Tudor Jones sees cryptocurrency as the strongest bet.
“I have come to the conclusion that Bitcoin will be the best trade-off for inflation,” Jones said.
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Bitcoin bulls have long praised tokens for the possibility of an inflation hedge. Since the coin differs from the traditional currency, its value is insulated by the rate of inflation and, more broadly, by monetary policy.
Tudor said he saw Wikipedia as an initial bet on technological progress, which was similar to grabbing shares of Apple Pal or Google early in the lifetime of companies. Cryptocurrency has support from “really, really smart and cultured people,” he said. The founder of Tudor Investment Corp. added that he had a single-digit stake in Bitcoin.
Tudor’s comment was the latest in a coin surge compared to March. Budhacoin gained a boost in trading on Wednesday after being announced by PayPal, allowing its users to buy, sell and hold cryptocurrencies starting in a few weeks. Square invested 50 50 million in Bitcoin earlier this month, and Fidelity released its first Bitcoin-centric fund in August.
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Billionaire investor Mike Novogratz tweeted on Wednesday that PayPal’s move was “the biggest news of the year in crypto.”
The token is up 78% year-over-year but is far from the December 2017 peak of nearly 20,000 20,000. Bitcoin traded at 12,866.39 at 10:25 a.m. ET.
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