U.Today - Renowned billionaire and hedge fund manager seems to be navigating away from Bitcoin as a safeguard against inflation, suggesting that the flagship digital asset has lost some of its luster.
The main drivers behind his apparent U-turn are the current ebb in inflation and the relentless tidal wave of regulatory scrutiny.
During a Monday with CNBC's "Squawk Box," Jones revealed that he still maintains a small stake in Bitcoin, but its appeal has diminished somewhat.
He expressed concerns over the U.S. regulatory apparatus, stating, "Bitcoin has a real problem because, in the United States, you have the entire regulatory apparatus against it."
Nevertheless, the billionaire is not poised to completely sever ties with Bitcoin. For him, the cryptocurrency remains an intriguing asset class, with its allure stemming from the fact that its supply cannot be manipulated by human intervention. He stressed, "It is the only thing that humans can't adjust the supply in, so I am sticking with it and I am always going to stick with it. It's just a small diversification in my portfolio." This diversification strategy is a common approach among investors to reduce risk.
No more rate hikes?
Jones also offered his insights on the state of the U.S. economy, indicating that he believes the Federal Reserve has concluded its rate-hiking campaign. He suggested that the central bank might have "done too much" in its fight against inflation, which he noted has been declining for the past 12 months.With inflation having been on a downward spiral for a year, he implied that the Fed's victory lap might not be too far off, acknowledging the tightrope they have to walk in steering the economic ship.