Paul Tudor Jones reportedly buying Bitcoin! Legendary trader Paul Tudor Jones reportedly buying Bitcoin as an inflation hedge as central banks across the world print money due to the economic crisis brought on by COVID-19.
Jones is one of Wall Street’s most successful and seasoned hedge fund managers. Bloomberg News reported that one of his funds holds a low single-digit percentage in futures on Bitcoin. He compared it to the gold trade in the 1970’s, according to the report.
It is notable that Bitcoin futures trading on the Chicago Mercantile Exchange (CME) jumped 5% on Thursday.
Jones is the founder and chief executive at Tudor Investment Corp. He believes that equities would eventually climb. His forecast seems to be correct, with the S&P 500 up about 18% since he last commented on equities in March, and the Nasdaq Composite positive for 2020.
His purchase of Bitcoin comes at a time of unprecedented central bank injections into their respective economies. This move by central banks, including the Federal Reserve, comes at a time of historic unemployment rates, which reached 33 million unemployed Americans this past week. The Fed has already enacted two emergency interest rate cuts that lowered borrowing costs to near zero, hearkening back to actions taken during the last financial crisis.
This printing of money is what has economists and investors worried that inflation will trend upward.
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