The past few years have been dominated by institutional adoption of cryptocurrencies, such as bitcoin (BTC). That’s why the necessary big names have come by who have stepped in, such as George Soros and Stan Druckenmiller. Paul Tudor Jones was also a loud BTC bull. But the market has taken a hit in recent months, and the famed fund manager is now backing down somewhat.
Paul Tudor Jones Still Has Bitcoin
He stated that in a interview with CNBC. Halfway through 2020, he was still very positive about Bitcoin, when he said that he had 1 to 2% of his portfolio in Bitcoin. Not much later, he recommended a 5% weighting. He was already managing billions at the time, so a few percent with the relatively small market value of bitcoin is a considerable amount for a single BTC investor. Meanwhile, the price has risen sharply, but he has reduced his risk.
“I still have a small allocation to bitcoin,” he emphasized. We don’t know what percentage we should think about. It is also not clear whether he has since sold part of this or not, for example it is possible that he made so much with the rest of his portfolio that he did not have to sell his BTC holdings at all.
Recession not good for BTC, but it is obvious
Furthermore, like many other analysts, he has a gloomy picture of the coming months. Jones also thinks that we are going to see a recession, and that this is because of the enormous inflation. “Inflation is a bit like toothpaste,” he explained. “Once it’s out of the tube, it’s almost impossible to get it back in. Meanwhile, the [Federal Reserve] frantically trying to get that taste out of his mouth. If that leads to a recession, it will have very negative consequences for risky assets.”
That’s why cash is the asset you want right now, as long as the US central bank continues to try to bring inflation back to 2%. Despite that, he still has a percentage in bitcoin.