Bitcoin Is Good Hedge in Current Geopolitical Tensions, Says Paul Tudor Jones

Despite the current selling pressure, billionaire investors continue to bet on Bitcoin (BTC) and see it as a potential hedge against the current geopolitical tensions. On Tuesday, October 10, billionaire hedge fund manager Paul Tudor Jones said that it’s extremely risky now to invest in risk assets, however, he has his hopes alive in Bitcoin.


Paul Tudor Jones and His Stance on Bitcoin

In an interview with CNBC, Tudor Jones said:

“It’s a really challenging time to want to be an equity investor and in US stocks right now. You’ve got the geopolitical uncertainty… the United States is probably in its weakest fiscal position since certainly World War II with debt-to-GDP at 122%.”

Speaking about Bitcoin, apart from the geopolitical tensions, Tudor Jones also pointed out the concerning macro developments. As interest rates rise in the United States, a troubling cycle ensues. Elevated interest rates lead to increased borrowing costs, which in turn result in higher debt issuance.

This surge in debt issuance prompts additional selling of bonds, subsequently driving rates even higher. This sequence of events places us in an unsustainable fiscal predicament, remarked Jones. “I can’t love stocks,” he said, “but I love bitcoin and gold.” He added that both assets should “probably take on a larger percentage of your portfolio than historically they would.”


The billionaire hedge fund manager has been bullish on Bitcoin over the last few years. Back in 2021, Jones said:

“Bitcoin is math, and math has been around for thousands of years.”

He has also expressed that the largest cryptocurrency by market capitalization was a means for him to invest in predictability. During an appearance on CNBC, he disclosed his heightened investment in Bitcoin, considering it a wager on predictability amidst uncertain economic circumstances.


Bitcoin Shows Strong Performance

Over the last week, the broader cryptocurrency has been under strong pressure with the Bitcoin price facing a rejection at $28,000. At press time, Bitcoin is trading 2% down at a price of $27,084 and a market cap of $528 billion.

But despite this, Bitcoin has outperformed in comparison to other top altcoins. As a result, Bitcoin’s share in the broader cryptocurrency market has shot past more than 50% as of now. In total, Bitcoin has surged by 66% this year, whereas Ether has experienced a 32% increase.

Bitcoin is more likely to outperform amid the uncertain macro developments, in comparison to the broader markets. However, knowing the fact that it’s a risk asset, investors should still maintain caution.

10 October, 2023

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