Veteran macro investor Paul Tudor Jones has reiterated his strong belief in Bitcoin, calling it an essential component of any portfolio built to withstand inflationary pressures. In a recent interview with Bloomberg TV, the founder of Tudor Investment Corp. underscored the mounting risks of a long-term inflationary regime in the U.S., which he believes warrants a reevaluation of traditional asset allocation strategies.
Inflation fears and a dovish Fed outlook
Jones argued that the U.S. economy is trapped in a “debt trap,” forcing policymakers to maintain artificially low real interest rates to manage the ballooning national debt. With inflation recently reported at 2.4% (slightly below expectations), he warned that this environment is unlikely to change soon.
May US #inflation slightly cooler than expected. Core CPI rose by 2.8% YoY, just below forecast of 2.9%, while headline inflation at 2.4%, matching expectations. Both figures remain above Fed’s 2% target, but Trump’s tariffs have not yet significantly impacted overall inflation. pic.twitter.com/VRZ4lzkbRN
— Holger Zschaepitz (@Schuldensuehner) June 11, 2025
Looking ahead to a potential second Trump presidency, Jones anticipates the appointment of an “uber-dovish” Federal Reserve chair to replace Jerome Powell. Such a shift, he suggested, would prioritize economic stimulus over inflation control, leading to persistently higher prices and declining purchasing power. In that context, he views Bitcoin not as a speculative bet but a hedge against systemic risk.
The ideal inflation-hedging portfolio
According to Jones, the best portfolio to combat inflation includes a mix of Bitcoin, gold, and stocks, balanced according to their volatility. “It would be some combination of vol-adjusted bitcoin, gold, and stocks,” he explained, noting that Bitcoin’s volatility is about five times that of gold. This means position sizes should be adjusted accordingly to maintain a stable risk profile.
Paul Tudor Jones is worth $8,100,000,000 and pioneered the entire modern hedge fund industry.
Today on Bloomberg, Paul says bitcoin is “probably part of your best portfolio to fight inflation”pic.twitter.com/XCR8vkIx5T
— Documenting ₿itcoin 📄 (@DocumentingBTC) June 11, 2025
Jones didn’t provide a specific allocation for Bitcoin in this interview, though in the past he suggested a 1–2% portfolio weighting. His reluctance to assign a figure this time reflects a broader emphasis on macroeconomic positioning rather than prescriptive asset splits.
A systemic hedge, not just a trade
Jones also framed Bitcoin as a crucial tool for navigating a global monetary environment increasingly dominated by financial repression. Citing Japan’s ultra-low interest rate strategy as a precedent, he warned that the U.S. might follow a similar path, running “really low real rates” and allowing inflation to run hot as a way to erode debt burdens.
In such a scenario, Jones believes investors are effectively being taxed via inflation. Bitcoin, gold, and stocks, in his view, are the best tools to preserve wealth as traditional fixed-income assets lose purchasing power.
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Source:: Legendary Investor Paul Tudor Jones Says Bitcoin Belongs in an Inflation-Resistant Portfolio