Bitcoin is going sideways, waiting for information from the Fed

Bitcoin was almost unchanged yesterday at the level above $ 39,000. Other altcoins mostly follow the trend of BTC. Both the Bitcoin market and the US financial market are waiting for the results of the important regular meeting of the Fed.

The Fed’s two-day closed session to assess the latest economic data is followed by many people, including famous investor Paul Tudor Jones.

In a recent interview with CNBC, he plans to increase the proportion of assets in BTC amid rising inflation.

Paul Tudor Jones said he likes Bitcoin and sees it as a great way to protect wealth over the long term. He also keeps BTC in his portfolio and compares it to gold. At the same time, BTC is mathematics for him so that he can predict the future. But what cannot be counted is human action and psychology.

What worries him is the Fed’s policy on monetary, inflationary, or national policies. So if the Fed makes wrong decisions, he wants to protect his wealth with assets. He wants to split his wealth into 5% gold, 5% bitcoin, 5% cash, 5% raw materials. The amount of assets remaining depends on political information from the Fed after this week’s closed session.

This meeting of the Fed is expected to set an interest rate policy or continue buying bonds and stocks. In terms of inflation, the US inflation rate is 5% according to the latest statistics, and many people say that the real rate of inflation is much higher. Meanwhile, the rate of inflation accepted by the Fed is only 2%.

If the Fed decides to control inflation, a rate hike will slow the development of the financial markets. On the contrary, if the Fed keeps pumping money into the market and keeps interest rates as low as they have been at 0%, investors like Paul Tudor Jones will be looking for stores of value like gold, BTC, etc.

According to a survey of 100 chief financial officers of global hedge funds conducted by fund administrator Intertrust on crypto investing. The survey results show that hedge funds are expected to hold an average of 7.2% of their assets in crypto over the next five years. This equates to a total of approximately $ 312 billion in assets invested in the crypto market.

Why MicroStrategy invests in BTC

In an interview with CNBC, Michael Saylor shared his views on BTC

MicroStrategy Company is a technology strategy company that has invested heavily in BTC recently. What made this company buy BTC was that the company had a large amount of cash at the time. Due to inflation concerns, MicroStrategy shareholders are reluctant to hold a lot of cash and are turning to digital investing.

At the same time, MicroStrategy CEO Michael Saylor also said that the company will continue to adopt BTC as a strategy parallel to the business. The company’s takeover of BTC due to high shareholder demand.

Before buying BTC, its share price was just over $ 120, but now the company’s stock is up more than $ 630. And recently, MicroStrategy took advantage of the soaring share price they were selling to get money to buy BTC and keep doing business.

A company or mutual fund can buy BTC entirely on its own. However, companies choose to invest indirectly through MicroStrategy stock because the stock is behind a company with products and revenues. The company can sell bonds or stocks to keep buying BTC. This is something that is difficult for companies and organizations that are buying BTC for investment by themselves. So the demand for MicroStrategy shares increased and the price increased.

Michael Saylor confirmed that he likes BTC and will continue to invest with MicroStrategy. There is a risk that this company will sell bonds and pay interest periodically. When the case falls due and that company doesn’t have enough money to pay BTC, it will have to sell part of its asset, which is BTC. When they sell in bulk, it also affects the market price.