A stunning BTC price surge accompanies concerns over the Federal Reserve's "institutional credibility."
Bitcoin (BTC) passed $40,000 on June 14 as a consolidation period snapped to unleash a solid breakout.
BTC price breaks out past $40,000
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD gaining 3% in under an hour, reaching $40,500 on Bitstamp.
The
largest cryptocurrency capitalized on upside which resulted from a new
positive tweet from Elon Musk over possible acceptance by Tesla in the
future.
Earlier, Cointelegraph reported on traders betting on a leg up to around $47,000 before a correction.
A
look at buy and sell positions on major exchange Binance showed support
at $38,000, wit resistance at $40,500 the next hurdle for bulls.
Tudor Jones advocates 5% BTC allocation
Bitcoin
reached a $2 trillion market cap because of a "dichotomy" in Federal
Reserve policy which "questions" its credibility, says famous trader
Paul Tudor Jones.
In an interview with CNBC on June 14, the founder of Tudor Investment Corporation sounded the alarm over advancing inflation.
After last week's consumer price index (CPI) report showed that U.S. inflation had hit a 13-year high, Bitcoin's deflationary nature has rarely looked so appealing.
For
Tudor Jones, the idea that higher inflation is just temporary due to
recent events, as suggested by the Fed and central banks in general, is a
myth.
"It's somewhat disingenuous to say, for them to say, that inflation is transitory," he told CNBC's Squawk Box segment.
Today's
environment is entirely different to that which saw episodes of
inflation in the past, such as 2013, and as such, there is little sense
in the Fed applying the same forecasts.
CPI was much lower then, Tudor Jones noted, while now, unemployment and jobs also roughly equal each other.
Related: Paul Tudor Jones says Bitcoin is 'like investing early in Apple or Google'
Meanwhile,
gold and Bitcoin have provided a refuge for many. Despite the precious
metal vastly underperforming Bitcoin in terms of gains, it remains near
record highs.
"When you look at the Fed today and the Fed back
then, you wonder how can you have such wildly different policy views on
what constitutes the right levels for employment, the right levels for
inflation," he continued.
"How can you have that with an
eight-year timeframe? It's almost like a split personality and you
wonder why Bitcoin has a $2 trillion market cap and gold's at $1,865 an
ounce. And the reason why is you have this dichotomy in policy that
again questions — questions — the institutional credibility of
something."
Ultimately, a 5% Bitcoin allocation is one of the only things he advocates to those seeking portfolio advice.
"I
say, 'OK, listen, the only thing I know for certain is I want to have
5% in gold, 5% in Bitcoin, 5% in cash, 5% in commodities at this point
in time,'" he added.
source link : https://cointelegraph.com/news/bitcoin-price-hits-40k-as-paul-tudor-jones-slams-fed-inflation-claims
