Paul Tudor Jones Outlines Bitcoin Hodling Strategy

The trader and founder of Tudor Investment, Paul Tudor Jones, told CNBC in an interview that he continues to hold a position in the leading cryptocurrency.

«I’ve always had a small allocation of #Bitcoin, » says @ptj_official. «We’re going to have to have fiscal retrenchment. In a time where there’s too much money, something like #crypto, specifically #Bitcoin and #Ethereum, that will have value at some point.» pic.twitter.com/9ZE8gQitpx

— Squawk Box (@SquawkCNBC) October 10, 2022

“I still have a small exposure to Bitcoin,” Jones said.

In his view, the top two cryptocurrencies by market capitalization will hold value “at some point” due to an overabundance of money. The trader suggested that the prices of these assets would rise.

Jones also pointed to the Federal Reserve’s monetary policy. Until 2018 it was fairly straightforward, but two years later the regulator “overdid it with quantitative easing” in support of the economy, and then sharply changed its strategy, he explained.

“Inflation is a bit like toothpaste. Once you squeeze it out of the tube, it’s hard to put it back. The Fed is fiercely trying to rinse this aftertaste from its mouth. […] If we enter a recession, that will have truly negative consequences for a whole range of assets,” noted the founder of Tudor Investment.

In June 2021 Jones said that will allocate 5% of capital to Bitcoin because of Fed policy. He argued that the leading cryptocurrency helps diversify an investment portfolio thanks to “built-in mathematics.”

Earlier he valued his Bitcoin holdings at $100 million. At that time, it was equivalent to 1-2% of his fortune.

As reported in October 2022, the author of the bestseller “Rich Dad Poor Dad” and entrepreneur Robert Kiyosaki urged to buy bitcoin amid the Fed’s rising rates.

In August, former hedge-fund manager of Cramer & Co. and host of Mad Money on CNBC Jim Cramer said that, due to tighter monetary policy, there would be “washout” of speculative instruments like digital assets.

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