Billionaire investor Paul Tudor Jones said Bitcoin is among the top beneficiaries of the current market environment, calling it “very, very appealing” during an interview on CNBC.
Jones, known for his endorsements of Bitcoin as a hedge against inflation, said the current market setup resembles the 1999 tech bubble, though with key differences that could make the upside even more dramatic.
Bitcoin is currently pricing at all-time highs. It surpassed its previous record of $124,466 over the weekend. Over the past week, it climbed more than 13%, rebounding from $109,000 at the end of September to $125,900 today.
Bitcoin last approached these levels in August.
Fiscal policy and economic speculation
The legendary hedge fund manager pointed to a combination of unprecedented fiscal and monetary conditions driving the rally.
Jones pointed to the combination of a 6% U.S. budget deficit and an ongoing Fed easing cycle creating conditions unlike 1999, when a surplus and rate hikes prevailed. He noted that while the next year could see substantial market gains, investors should remain cautious, as the peak could arrive abruptly.
Jones noted that the largest price increases occur in the 12 months leading up to a market top, so active risk management is essential even during strong rallies. When asked which assets are positioned to benefit, Jones singled out gold and Bitcoin.
“The biggest winners are gold… Bitcoin, I want to say it’s up 50 or 60%,” he said, adding that crypto and digital gold are particularly appealing in a market poised for continued speculative fervor.
He also cited a basket of retail-favored “meme stocks,” noting they have seen sharp gains, but emphasized the long-term potential of crypto.
For investors considering exposure, Jones suggested a mix of gold, crypto, and tech equities like the Nasdaq.
As Bitcoin continues to attract attention from both retail and institutional players, Jones’ endorsement reinforces its position as a hedge in a market where traditional equities may be approaching a frothy peak.
Earlier this year, Billionaire venture capitalist Tim Draper, a longtime Bitcoin advocate, predicted that retailers will eventually move from accepting Bitcoin to exclusively using it as payment.
