Billionaire hedge fund manager backs Bitcoin as his inflation trade

Jaipur (CoinChapter.com) — The Federal Reserve going easy on the rising consumer prices will boost bullish sentiment on every inflation trade, including bitcoin, said billionaire hedge fund manager Paul Tudor Jones.

If Fed’s cool with inflation…

In the latest interview with CNBC, Mr. Jones said he would be keeping a close watch on the upcoming Federal Open Market Committee (FOMC) meeting this week, noting that he will go all-in on crypto, commodities, and gold should the central bank officials give off “unperturbed vibes” on rising inflation numbers and consumer prices.

Read More: Bitcoin week ahead Ep07: Let’s focus on the inflation-centric FOMC meeting

If they say, ‘we’re on the path, things are good,’ then I would go all-in on the inflation trades. I’d probably buy commodities, buy crypto, buy gold.

The prominent Wall Street figure flipped bullish on Bitcoin last year. He admitted holding a low single-digit percentage of BTC in his portfolio as a hedge against inflation.

Mr. Jones’ statement came as Tesla CEO Elon Musk’s asserted that he would resume BTC transactions if there’s “confirmation of reasonable (~50%) clean energy usage by miners with the positive future trend”.

Bitcoin jumps

The above news was enough for bitcoin bulls and opportunistic buyers to own their bearish counterparts. The daily BTC/USD chart shows the trading pair post a breakout above the 20-day exponential moving average (EMA) line.

That was followed by another green candle above the 20-day EMA (resistance flipped into support). According to market analyst Josh Arnold, it is a clear indication of an upcoming bullish trend in the bitcoin market.

However, Arnold also states that BTC would need to register at least two closes above the 20-day EMA to reinstate bullish sentiment.

As of now, the asset looks primed to climb back above the $42,500 resistance. The same has acted as a crucial upper price barrier for over a month now.

The 20-day MACD (Moving Average Convergence Divergence Indicator) posted a bullish crossover (blue line crossed over the red line). A convergence between the 20-day RSI trend and bitcoin’s price action also hints at the end of bearish momentum.

However, as mentioned above, the flagship cryptocurrency should post another successive close above the 20-day EMA and turn the $42,500 into support. If the said scenario plays out, bitcoin could shoot up towards the next resistance level at $44,500. Supported by frantic buying activity.