US stocks futures jumped on Monday while the US dollar index declined 22 basis points. cryptocurrencies like Bitcoin (B T c), Ethereum (ETC), Solana (SOL) and Cardano (ADA) are also in the green. Now, Paul Tudor Jones, a hedge fund manager and Wall Street veteran, believes the market is going through a turnaround.
Paul Tudor Jones Stock Forecast
Paul Tudor Jones is one of the most famous Wall Street legends. While his star has faded recently, Jones is best known for making billions of dollars during the last global financial crisis by betting against the housing sector.
Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter today.
Now, Jones believes the Federal Reserve is done raising interest rates for the year. In an interview with CNBC, he predicted that US stocks would end the year much higher than they are today.
This is notable because the main US indices are higher than where they started the year. nasdaq 100 index while a bull has gone into the market S&P 500 And the Dow Jones has jumped more than 18% from its 2022 low.
Jones cited the fact that inflation and inflation expectations have fallen over the past few months. Headline CPI fell to 4.9% in April, while inflation fears among S&P 500 executives fell to the lowest point since 2021. They said:
“They can probably declare victory now because if you look at the CPI, it’s been falling for 12 months in a row … that’s never happened before in history.”
He also cited that there is a lot of dry powder in the market that is ready to be deployed. Dry powder refers to liquid funds that can be deployed in the market. They said:
“We have no IPO, no calendar, no secondary, valuation at 19 but no one is in a rush to offer so clearly, something is going on internally in the stock market.”
Implications for bitcoin and other cryptocurrencies
Paul Tudor Jones’ statement is bullish for both stocks and cryptocurrencies such as Bitcoin, Ethereum, Solana, and Cardano. In the past, there has been a close correlation between stocks and bitcoin, the largest cryptocurrency in the world.
For example, the Nasdaq 100 and bitcoin are down by double digits in 2022. Similarly, bitcoin and US stocks reached their all-time highs in 2021.
So, if stocks rally as Paul Jones expects, bitcoin is likely to soar as well. BTC has a close correlation with other altcoins such as Cardano, Solana, and Ethereum.
Advertisement
Invest in top cryptocurrencies quickly and easily with the world’s largest and most trusted broker, eToro,
10/10
77% of retail CFD accounts lose money