Veteran Macro Investor Paul Tudor Jones Reiterates His Strong Belief in Bitcoin

Veteran macro investor Paul Tudor Jones has reiterated his strong belief in Bitcoin

Veteran macro investor Paul Tudor Jones has once again highlighted his strong belief in Bitcoin, presenting it as an essential component of any portfolio designed to withstand inflationary pressures. In a recent interview on Bloomberg TV, the founder of Tudor Investment Corp. expressed his growing concerns over a long-term inflationary regime in the U.S., leading him to suggest a material shift in traditional asset allocation thinking.

As reported by Bloomberg, Jones anticipates an "uber-dovish" Federal Reserve chair being appointed by a second Trump presidency to replace Jerome Powell. This shift in leadership would likely prioritize economic stimulus over inflation control, ultimately leading to persistently higher prices and a decline in purchasing power.

In that context, Jones values Bitcoin not as a speculative bet but rather as a hedge against systemic risk. According to Jones, the best portfolio to combat inflation would include a mix of Bitcoin, gold, and stocks, balanced according to their volatility.

"It would be some combination of vol-adjusted bitcoin, gold, and stocks," Jones explained, highlighting that Bitcoin's volatility is about five times that of gold. This difference in volatility would necessitate adjusting position sizes accordingly to maintain a stable risk profile.

While Jones didn't provide a specific allocation for Bitcoin in this interview, he previously suggested a 1-2% portfolio weighting. However, his reluctance to assign a figure this time indicates a broader emphasis on macroeconomic positioning rather than prescriptive asset splits.

Furthermore, Jones emphasized the importance of Bitcoin in a global monetary environment increasingly characterized by financial repression. Citing Japan's experience with ultra-low interest rates over the past quarter century, Jones predicts that the U.S. might follow a similar path, running "really low real rates" and allowing inflation to run hot. This strategy, he explained, would be employed to manage the ballooning national debt.

In such a scenario, investors are effectively being taxed via inflation, and traditional fixed-income assets, such as bonds, would lose purchasing power at a rapid pace. In this context, Jones highlighted Bitcoin, gold, and stocks as the best tools for preserving wealth.