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Legendary investor Paul Tudor Jones recommends 5% Bitcoin exposure

Photo of: Joseph Stone
by Joseph Stone

In an interview with CNBC News, billionaire and fund manager, Paul Tudor Jones made it known that he will invest 5% of his wealth in Bitcoin given the inflationary threat to the US economy.

Bitcoin is off to a good start this week, breaking through the $40K resistance mark by posting an intraday increase of more than 12% compared to its closing price on Sunday. Its price even reached $41,076.03 in yesterday’s session.

This bullish momentum around Bitcoin was spurred by Tesla’s announcement that it could re-connect with Bitcoin if it proves to be less polluting. The intraday rally would continue with the release of Tudor Jones. Within 1 hour, the cryptocurrency had gained more than 3% in the stock market.

According to the latest Bureau of Labor report, US inflation had just reached a 13-year high in the past two months. The accommodative monetary policy adopted by the Fed with the purchase of the equivalent of 100 billion dollars of bonds each month, has helped accelerate the rate of inflation across the Atlantic.

For Tudor Jones, the exit of the Fed scheduled for this will be one of the most significant steps in the career of Jerome Powell because to say that the current situation of inflation is “transitory” seems hypocritical.

‘If they treat these numbers – which were significant events, they were very significant – if they treat them nonchalantly, I think that’s just a green light to bet heavily on every inflation trade.

To be more specific, Tudor made it known that if the Fed were to adopt the dovish tone, he would bet on commodities, gold and cryptocurrencies.

“The only thing I know for sure is that I want 5% in gold, 5% in bitcoin, 5% in cash, 5% in commodities. Right now, I don’t know what I want to do with the other 80% until I see what the Fed is going to do.” said the founder of Tudor Investment Corporation.

While Tesla has been less supportive of Bitcoin, MicroStrategy has been steadily bolstering its cryptocurrency portfolio. During the Crypto Crash period, MicroStrategy had purchased 229 bitcoins bringing its total to 92,079.

The Michael Saylor-led company doesn’t plan to stop there. It plans to invest another $488 million in Bitcoin. Funds it plans to raise from a private offering to investors. MicroStrategy is betting on the future of Bitcoin’s price.

“Bitcoin does not pay interest or other returns, and therefore the ability to generate a return on investment from the net proceeds of this offering will depend on how much the value of bitcoin appreciates after we purchase bitcoin with the net proceeds of this offering.”