- Paul Tudor Jones defends Bitcoin as inflation hedge, urging investors to combine it with gold and volatile-adjusted equities.
- Bitcoin’s fixed supply and decentralization offer protection against central bank monetary expansion and declining real interest rates.
Paul Tudor Jones, a seasoned fund manager and founder of Tudor Investment Corporation, asserts that Bitcoin should be included in every investment portfolio. From his position leading a firm with over $16 billion in assets under management, he argues that this cryptocurrency serves a practical role: acting as a safeguard against the erosion of purchasing power.
For Jones, Bitcoin is neither a passing trend nor a purely speculative instrument. His analysis relies on the asset’s technical features: it has a capped supply of 21 million units, which prevents central banks from expanding it as they do with fiat currencies.
Inflation remains a major variable
In May, the Consumer Price Index rose by 0.1% on a monthly basis, below the expected 0.2%. However, annual inflation reached 2.4%, slightly higher than the previous month. In this context, Jones suggests that the Federal Reserve is likely to cut rates in 2025. This expectation boosts the appeal of assets that have historically benefited from looser monetary policy.
Jones’s approach is not limited to Bitcoin. He proposes a combination of Bitcoin, gold, and volatility-adjusted equities. According to him, this trio can provide balance against inflation and the potential decline of real returns. He does note, however, that Bitcoin requires more careful position sizing due to its high market volatility.
On the political front, Jones also looks to the Federal Reserve. He believes that Donald Trump, will replace Jerome Powell when his term ends in 2026. Among the possible successors, he names Scott Bessent and Kevin Warsh, favoring the former. He argues that a change in Fed leadership toward a more flexible monetary stance could strengthen Bitcoin’s role as a financial tool.
Simultaneously, he proposes a mixed economic plan that would include tax increases on higher-income groups and spending cuts in areas like defense and social programs. The goal would be to reduce the deficit while keeping real interest rates below inflation. This approach, he notes, could have medium-term impacts on bond and equity markets but would strengthen assets like Bitcoin.
Paul Tudor Jones emphasizes that the current environment—defined by rising U.S. debt and interest rates below inflation—hurts traditional portfolios. In this scenario, leaving Bitcoin out of the portfolio could weaken the ability to protect against declining currency value.
Bitcoin (BTC) is trading at $107,823 USD, reflecting a slight −0.79% decline on the day. Over the last week, BTC has gained +2.74%, and it’s up +4.67% for the month, bringing its year-to-date performance to +15.27% and its annual gain to +59.87%. This consistent upward trend reinforces Bitcoin’s position as the dominant force in the cryptocurrency market, now boasting a market capitalization of over $2.14 trillion.
Fundamentally, Bitcoin’s price is benefiting from macroeconomic catalysts. Recent U.S. economic data, including a weaker-than-expected Producer Price Index (PPI), has bolstered the crypto market by increasing expectations for lower interest rates.
Additionally, Bitcoin adoption at the institutional level continues to deepen: Brazil has proposed allocating 5% of its $370 billion national reserves to Bitcoin, a move that could create the world’s first sovereign BTC reserve if fully enacted. Meanwhile, MicroStrategy now holds 582,000 BTC, worth around $63 billion, further cementing corporate conviction in Bitcoin as a long-term treasury asset.
