Bitcoin Price Hits $ 40K As Paul Tudor Jones Criticizes Fed Inflation Claims

Bitcoin (BTC) broke above $ 40,000 on June 14 as a consolidation period that broke to unleash a solid breakout.

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

BTC price exceeds $ 40,000

Cointelegraph Markets Pro data and TradingView showed that BTC / USD gained 3% in less than an hour, reaching $ 40,600 on Bitstamp.

The largest cryptocurrency capitalized on the silver lining that resulted from a new positive tweet from Elon Musk about Tesla possibly accepting BTC in the future.

Previously, Cointelegraph reported on traders betting on a stretch up to around $ 47,000 before a correction.

A look at the buy and sell positions on Binance’s major exchanges shows support at $ 38,000, with resistance at $ 40,500, the next hurdle for bulls.

Buy and sell levels on Binance as of June 14. Source: Material Indicators / Twitter

Paul Tudor Jones Advocates for a 5% BTC Allocation

Bitcoin reached a market capitalization of $ 2 trillion due to a “dichotomy” in Federal Reserve policy that “calls into question” its credibility, famous trader Paul Tudor Jones said.

In an interview with CNBC on June 14, the founder of Tudor Investment Corporation sounded the alarm on the advance of inflation.

After last week’s Consumer Price Index (CPI) report showed that US inflation has hit a 13-year high, the deflationary nature of Bitcoin has rarely seemed so appealing.

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

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

The current environment is completely different from those that saw bouts of inflation in the past, such as in 2013. As such, it makes little sense for the Fed to apply the same forecasts, Jones believes.

Jones pointed out that the CPI was much lower then, whereas now, unemployment levels and job openings are roughly equal to each other as well.

Related: Paul Tudor Jones Says Bitcoin Is ‘Like Investing Early In Apple Or Google’

Meanwhile, gold and Bitcoin have provided a haven for many. Even though the precious metal is far below Bitcoin in terms of earnings, it remains close to all-time highs.

“When you look at the Fed today and the Fed back then, you ask yourself: How can you have such radically different political views on what constitutes the right levels of employment, the right levels of inflation?” he continued.

“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 market capitalization of $ 2 trillion and gold at $ 1,865 an ounce. And the reason is because you have this dichotomy in politics that again questions – questions – the institutional credibility of something. “

Ultimately, a 5% Bitcoin allocation is one of the only things he recommends to those seeking portfolio advice.

“I say, ‘OK, listen. The only thing I know for sure is that I want to have 5% in gold, 5% in Bitcoin, 5% in cash, 5% in commodities right now,'” he said. . additional.