Invezz.com - American stocks futures jumped on Monday while the US dollar index dropped by 22 basis points. Cryptocurrencies like Bitcoin (BTC), Ethereum (ETC), solana (SOL), and Cardano (ADA) are also on the green. Now, Paul Tudor Jones, a hedge fund manager and a Wall Street legend believes that the market is going through a turnaround.
Paul Tudor Jones stocks forecast
Paul Tudor Jones is one of the best-known 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.
Now, Jones believes that the Federal Reserve has completed hiking interest rates for the year. In an interview with CNBC, he predicted that American stocks will end the year much higher than where they are today.
This is notable since the main American indices are higher than where they started the year. The Nasdaq 100 index has moved to a bull market while the S&P 500 and Dow Jones indices have jumped by over 18% from the lowest point in 2022.
Jones cited the fact that inflation and inflation expectations have dropped in the past few months. The headline CPI dropped to 4.9% in April while inflation fears among S&P 500 executives dropped to the lowest point since 2021. He said:
“They could probably declare victory now because if you look at CPI, it’s been declining 12 straight months… That’s never happened before in history.”
He also cited that the market has a lot of dry powder that is ready to be deployed. Dry powder refers to liquid funds that can be deployed in the market. He said:
“We have no IPOs, no calendar, no secondaries, valuations are at 19 but nobody’s rushing to offer so clearly, something is going on internally in the stock market.”
Implications for Bitcoin and other cryptocurrencies
The statement by Paul Tudor Jones is bullish for both stocks and cryptocurrencies like Bitcoin, Ethereum, Solana, and Cardano. In the past, there have been a close correlation between stocks and bitcoin, the biggest cryptocurrency in the world.
For example, the Nasdaq 100 index and Bitcoin crashed by double digits in 2022. Similarly, bitcoin and American stocks reached their all-time high level in 2021.
Therefore, if stocks jump as Paul Jones expects, then there is a possibility that Bitcoin will rise as well. BTC has a close correlation with other altcoins like Cardano, Solana, and Ethereum.
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