Paul Tudor Jones: BTC and ETH could go up amid global inflation

Billionaire hedge fund manager Paul Tudor Jones disclosed that he still had a small amount of bitcoin while predicting that the US economy may be entering or has already entered a recession. The value of assets like ETH and BTC may rise in the face of inflation and excessive government spending, according to him.

During an interview with CNBC, Jones claimed that there has been a “massive experimentation with monetary policy” over the past 12 years, adding that the next US President in 2024 will have to cope with exceptionally high debt dynamics that would lead to fiscal conservatism.

Jones: Inflation could lead to a crypto bull market

The hedge fund manager went on to the possibilities in cryptocurrencies and stated that Bitcoin and Ethereum may appreciate in value over time due to inflation. However, he did not specify a timeframe for the prospective price hikes of the two major crypto assets. He stated:

“In a time where there is too much money which is why we have inflation and too much fiscal spending, something like crypto, specifically Bitcoin and Ethereum, where there is a finite amount of that, that will have value at some point someday. I don’t know when that will be, but it will have value, that scarcity premium.”

While central banks are able to generate unlimited amounts of cash, this is not possible with bitcoin because the asset’s supply is capped to 21 million. While this was happening, Ethereum temporarily entered a deflationary phase, with the total supply of ETH in circulation lately falling by 0.41%. 

The billionaire stated that despite bitcoin’s price falling from its ATH of about $96,000 in November 2021 to its present value of $20,000, he still held a “minor allocation” in the cryptocurrency. Jones invested 1% to 3% of his assets in BTC in May 2020 to hedge against the possibility of rising U.S. inflation.

Interestingly, Jones’ statement mirrors one made by billionaire American investor Stanley Druckenmiller, who claimed that as people lose faith in governments and central banks, cryptocurrencies might play a significant role in a revival.