A double-whammy of falling inflation and an unfriendly regulatory environment in the US has lessened bitcoin's appeal, according to Paul Tudor Jones, founder of the $12 billion hedge fund firm Tudor Investment Corporation.

Speaking on CNBC's Squawk Box, Jones said: "Bitcoin has a real problem because in the United States, you have the entire regulatory apparatus against it."

And Jones – who in the past has cited bitcoin as an inflationary hedge – believes that with US inflation likely to continue falling, his sentiment towards the cryptocurrency is now far less bullish.
 
Back in 2020, Jones said the he could see himself allocating as much as 5% of his assets to bitcoin, but that sentiment seems to have cooled since after he described his exposure as "minor" last October.