Billionaire hedge fund manager Paul Tudor Jones says he would want to have 5% in Bitcoin now that he sees how it can protect wealth in the long term.
In an interview with CNBC on June 14, when talking about Bitcoin (BTC) Jones stated that he likes investing in something that is “reliable, consistent, honest, and 100% certain”, and added that he favours Bitcoin as a portfolio diversifier.
Jones’s firm, Tudor Investment Corp, has US$44.6 billion assets under management (AUM) and has recently secured custodial ties with institutional crypto powerhouses Coinbase and Bakkt. Jones had previously recommended 1% to 2% BTC holdings in a portfolio in 2020 but has now stated that 5% would be a good allocation given the current state of the US Federal Reserve.
Uncertainty About Inflation
One of the reasons for changing his position is that Jones is “going all in on inflation trades” depending on US Federal Reserve decisions to address inflation by shifting its policies this week.
If they say, ‘We’re on path, things are good’, then I would just go all in on the inflation trades. I’d probably buy commodities, buy crypto, buy gold …
Paul Tudor Jones
If the FED decides not to do anything about inflation and prices continue to go up, investing in things that increase as price increases is a strategy (inflation trades). In the meantime, inflation data revealed the biggest price spikes in 13 years for two months in a row.
Additionally, Jones stated that stockmarket value has increased to 220% of the US gross domestic product (GDP); at the time the dot.com bubble burst, it was around 200%. This is something Jones said is of concern to him. The FED is currently meeting behind closed doors to discuss the economic figures, with a statement and press conference expected on June 16.
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