Key Takeaways
- • Paul Tudor Jones said on CNBC's "Squawk Box" on October 22, 2020 that bitcoin's rally is in the "first inning" and that he likes the asset even more than when he first disclosed his position in May.
- • Jones called bitcoin the best inflation trade, arguing that unprecedented Federal Reserve quantitative easing is setting the stage for a major return of inflation.
- • Jones said he holds a "small single-digit investment" in the cryptocurrency, which he first revealed in May 2020.
- • Bitcoin traded near $12,900 on October 22, its highest level since January 2018, and has fully recovered from its March coronavirus-driven lows.
- • PayPal's announcement that users can buy, hold and sell cryptocurrencies was cited as a key driver of this week's strength.
Summary
Billionaire hedge fund manager Paul Tudor Jones, founder and chief investment officer of Tudor Investment Corporation, has turned more bullish on bitcoin, according to CNBC. Speaking on CNBC's "Squawk Box" on Thursday, October 22, 2020, Jones said, "I like bitcoin even more now than I did then. I think we are in the first inning of bitcoin and it's got a long way to go." He first disclosed his bitcoin investment in May and said he holds a "small single-digit investment" in the cryptocurrency.
Jones framed bitcoin as the strongest of a group of inflation hedges he has favored, alongside gold, TIPS breakevens, copper and a long position in the yield curve. He attributed the outlook to the unprecedented quantitative easing undertaken by the Federal Reserve, which he believes is setting the stage for inflation to make a grand comeback. "I came to the conclusion that bitcoin was going to be the best inflation trade," Jones said.
Bitcoin has fully rebounded from its coronavirus lows in March. On Thursday the digital coin hit its highest level since January 2018, trading at around $12,900. According to CNBC, the week's strength largely followed news that PayPal will allow its users to buy, hold and sell cryptocurrencies.
Jones also compared bitcoin to early positions in major technology companies, saying, "Bitcoin has this enormous contingence of really, really smart and sophisticated people who believe in it. It's like investing with Steve Jobs and Apple or investing in Google early." He is known for predicting and profiting from the 1987 stock-market crash and chairs the non-profit JUST Capital, which ranks public U.S. companies on social and environmental metrics.
Jones framed bitcoin as the strongest of a group of inflation hedges he has favored, alongside gold, TIPS breakevens, copper and a long position in the yield curve. He attributed the outlook to the unprecedented quantitative easing undertaken by the Federal Reserve, which he believes is setting the stage for inflation to make a grand comeback. "I came to the conclusion that bitcoin was going to be the best inflation trade," Jones said.
Bitcoin has fully rebounded from its coronavirus lows in March. On Thursday the digital coin hit its highest level since January 2018, trading at around $12,900. According to CNBC, the week's strength largely followed news that PayPal will allow its users to buy, hold and sell cryptocurrencies.
Jones also compared bitcoin to early positions in major technology companies, saying, "Bitcoin has this enormous contingence of really, really smart and sophisticated people who believe in it. It's like investing with Steve Jobs and Apple or investing in Google early." He is known for predicting and profiting from the 1987 stock-market crash and chairs the non-profit JUST Capital, which ranks public U.S. companies on social and environmental metrics.
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