Why Crypto Prices Will Go Higher According To Billionaire Paul Tudor Jones!
In a new interview with CNBC, billionaire and hedge fund manager Paul Tudor Jones says that he strongly believes cryptocurrencies like Bitcoin and Ethereum will eventually rise from their current price range and go even higher as the bear market ends.
The billionaire explains that he himself owns some Bitcoin to his name and explains that he isn’t necessarily bearish on the crypto market as he believes cryptocurrencies will do well over the next decade as the macro environment recovers.
“So in a time when there’s too much money, which is why we have inflation, and too much fiscal spending, something like crypto, specifically Bitcoin and Ethereum, where there’s a finite amount of that, that will have value at some point. Someday, I don’t know when that will be, but it will have value, that scarcity premium.” Jones explains.
"I've always had a small allocation of #Bitcoin, " says @ptj_official. "We're going to have to have fiscal retrenchment. In a time where there's too much money, something like #crypto, specifically #Bitcoin and #Ethereum, that will have value at some point." pic.twitter.com/9ZE8gQitpx
— Squawk Box (@SquawkCNBC) October 10, 2022
Jones also explains that he strongly believes Ethereum and Bitcoin’s price will recover and rise from their current price ranges.
He explains that the reason crypto prices are so bearish right now are mostly due to the macro environment and issues surrounding inflation and the FED’s constant interest rate hikes. Jones claims that when these interest rate hikes stop, cryptocurrencies will see a big rally where their prices return to their usual highs.
“There will be a point when the Fed stops hiking. There will be a point when it starts to either slow down or even at some point it’ll reverse those cuts and when that happens, you’ll probably have a massive rally in a variety of beaten down inflation trades including crypto.”
Crypto vs The FED
Crypto prices have constantly been seeing massive fluctuations due to the FEDs. Just last month Bitcoin saw its price fall briefly to $18,000 and Ethereum to $1,200 after the FED announced a 75 bps hike rate.
Other cryptocurrencies like Dogecoin, Solana, Polygon and more have also taken quite the hit in their prices after the announcement.
Now at the time of writing, Bitcoin is currently trading at a price of $19,100, and Ethereum at $1,280.