Cryptocurrency News

Bitcoin Price Reaches $40K as Paul Tudor Jones Criticizes Fed Inflation Claims

bitcoin (B T c) crossed $40,000 on June 14 as a consolidation period had ended to get a solid breakout.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

BTC price breaks above $40,000

data from Cointelegraph Bazaar Pro and trading view BTC/USD rose 3% on Bitstamp to reach $40,500 within an hour.

The largest cryptocurrency has been capitalized on the upside as a result of a new positive tweet from Elon Musk on possible acceptance by Tesla in the future.

Earlier, Cointelegraph reported that traders were betting around $47,000 before the correction.

A look at the buying and selling positions on major exchange Binance, with support at $38,000, with resistance at $40,500 the next hurdle for the bulls.

Buy and sell on Binance until June 14th. Source: Content Indicator/Twitter

Tudor Jones Advocating for 5% BTC Allocation

Well-known trader Paul Tudor Jones says a “dichotomy” in Federal Reserve policy caused bitcoin to reach a $2 trillion market cap, which “questiones” its credibility.

in one interview With CNBC on June 14, the founder of Tudor Investment Corporation sounded the alarm over pushing inflation.

After last week’s Consumer Price Index (CPI) report showed that US inflation was in reached a 13-year highBitcoin’s deflationary nature has rarely looked so appealing.

For Tudor Jones, the idea that high inflation is just temporary due to recent events, as suggested by the Fed and central banks in general, is a myth.

“It’s somewhat absurd for them to say that inflation is fleeting,” he told CNBC’s Squawk Box segment.

The environment today is completely different from that which had seen episodes of inflation in the past, such as 2013, and as such, it makes no sense at the Fed to apply the same forecasts.

The CPI was very low then, Tudor Jones said, whereas now, unemployment and jobs are also almost equal to each other.

related: Paul Tudor Jones Says Bitcoin Is ‘Like Investing in Apple or Google Early’

Meanwhile, gold and bitcoin have given refuge to many. Despite the underperformance of the precious metal bitcoin in terms of gains, it remains near record highs.

“When you look back at the Fed and the Fed today, you wonder how you can have such wildly different policy views on what constitutes the right level for employment, the right level for inflation,” he continued. kept.

“How can you have that with an eight-year time frame? It’s almost like a split personality and you wonder why bitcoin has a $2 trillion market cap and gold at $1,865 an ounce. And here’s why That you have this conflict in policy that again questions — questions — the institutional credibility of something.”

Ultimately, the 5% bitcoin allocation is just one of the things he advocates for those seeking portfolio advice.

“I say, ‘Okay, listen, the only thing I know for sure is I want to hold 5% in gold, 5% in bitcoin, 5% in cash, 5% in commodities at the moment. I am,” she added. .