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Bitcoin (BTC) topped $ 40,000 on June 14 as a period of consolidation kicked in to trigger a solid breakout.
1 hour BTC / USD candle chart (Bitstamp). Source: TradingViewBTC price exceeds $ 40,000
Data from Cointelegraph Markets Pro and TradingView showed that BTC / USD gained 3% in less than an hour, reaching $ 40,600 on Bitstamp.
The largest cryptocurrency capitalized on the rise resulting from a new positive tweet from Elon Musk regarding Tesla possibly accepting BTC in the future.
Earlier, Cointelegraph reported that traders were betting on a leg up to around $ 47,000 before a correction.
A look at buy and sell positions on major Binance exchanges shows support at $ 38,000, with resistance at $ 40,500 the next hurdle for the bulls.
Buy and sell levels on Binance as of June 14. Source: Material Indicators / Twitter Paul Tudor Jones advocates an allocation of 5% BTC
Bitcoin reached a market cap of $ 2 trillion due to a “dichotomy” in Federal Reserve policy that “calls into question” its credibility, famed trader Paul Tudor Jones said.
In an interview with CNBC on June 14, the founder of Tudor Investment Corporation sounded the alarm bells about rising inflation.
After last week’s Consumer Price Index (CPI) report showed inflation in the United States to have peaked in 13 years, Bitcoin’s deflationary nature has rarely looked 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 misleading to say that inflation is transient for them to say that inflation is transient,” he told CNBC’s Squawk Box segment.
Today’s environment is totally different from those that have experienced episodes of inflation in the past, such as in 2013. As such, it makes little sense for the Fed to apply the same ones. forecasts, Jones said.
Jones noted that the CPI was much lower then, whereas today unemployment levels and job vacancies are also roughly equal.
Related: Paul Tudor Jones Says Bitcoin Is ‘Like Investing In Apple Or Google Early’
Meanwhile, gold and Bitcoin have provided a safe haven for many. Although the precious metal has significantly underperformed Bitcoin in terms of gains, it remains close to record highs.
“When you look at the Fed today and the Fed then, you ask yourself: how can you have such different political views on what constitutes good employment levels, good inflation levels? ? ” 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 cap of $ 2,000 billion and gold at $ 1,865 an ounce? . And the reason is you have this dichotomy in politics that calls into question the institutional credibility of something. “
Ultimately, a 5% Bitcoin allocation is one of the only things he recommends for those looking for portfolio advice.
“I say ‘OK, listen. The only thing I’m sure is I want to have 5% gold, 5% Bitcoin, 5% cash, 5% commodity at that time.” , did he declare. added.
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