On Oct. 10, the billionaire investor told CNBC that it was an extremely tough time to be an investor in risk assets amid escalating geopolitical tensions and America’s dire financial situation.
The founder and chief investment officer of Tudor Investment said, “It’s a really challenging time to want to be an equity investor and in U.S. stocks right now,”
He added that the U.S. is “probably in its weakest fiscal position since certainly World War II with debt-to-GDP at 122%.”
Bitcoin and Gold Preferable
According to CNBC, he said the Israel-Hamas war brought on the most threatening and challenging geopolitical environment. This could create a significant risk-off market environment, he said before adding:
“I can’t love stocks, but I love Bitcoin and gold.”
Paul Tudor Jones: “I like Bitcoin and I like gold”
One of the greatest investors in the world just endorsed Bitcoin as a geopolitical safe haven asset.
— Will Clemente (@WClementeIII) October 10, 2023
Paul Tudor Jones blamed surging interest rates and galloping debts for America’s financial woes. Interest rates are currently 5.5%, while the national debt is at a record $33.5 trillion, with billions of dollars being piled on every day.
“As interest costs go up in the United States, you get in this vicious circle, where higher interest rates cause higher funding costs, cause higher debt issuance, which cause further bond liquidation, which cause higher rates, which put us in an untenable fiscal position.”
The billionaire investor has been a Bitcoin bull for the past three years or so, revealing that he had allocated 1-2% of his assets in BTC in 2020. The following year, he said he wanted a 5% allocation to Bitcoin.
During the depths of the bear market in May 2023, he maintained his affinity for the asset.
“It’s the only thing that humans can’t adjust the supply in. So I’m sticking with it; I’m going to always stick with it. It’s just a small diversification in my portfolio,” he said at the time.
BTC Price Outlook
Despite the big endorsement, BTC has dropped 2% on the day in a fall to $27,151 at the time of writing.
Bitcoin failed to break resistance at $28,000 over the weekend and has retreated to its lowest level since October 1.
Analysts have noted the market chop but confirmed that the longer-term trend since the cycle low last November is still up.
It’s no wonder #Bitcoin analysts are so split on the next direction when you look at market structure.
Equal highs and equal lows on high time frames?? Price has gone almost completely neutral.
So far the facts are though, the uptrend is still intact.
And now, we may even be… pic.twitter.com/eZEwZjB6NY
— CryptoCon (@CryptoCon_) October 10, 2023
