Paul Tudor Jones Prefers Crypto Over Gold Which is “Clearly Winning The Race”

Hedge Fund Manager, Paul Tudor Jones, Prefers Crypto Over Gold Which is “Clearly Winning The Race”

Much like the crypto community, the billionaire investor said he would rather own Bitcoin itself than the futures-tied ETF but said investors should “take great comfort” that it’s approved by the SEC.

Billionaire investor Paul Tudor Jones sees cryptocurrency as a hedge against inflation and said, “It would be my preferred one over gold at the moment.”

The founder of hedge fund Tudor Investment Corp. said in an interview on CNBC that he prefers crypto assets over traditional hedges like gold; as such, he has “crypto in single digits in my portfolio.”

Back in June, Jones had said that Bitcoin is a great way to protect his wealth over time, calling it the world’s biggest store of wealth.

“We’re moving into an increasingly digitized world.” “Clearly there’s a place for crypto, and clearly it’s winning the race against gold at the moment.”

The precious metal, which is a traditional safe-haven asset is only up 3.08% this month but down 5.92% this year so far. Bitcoin, meanwhile, has spiked 50% in October to hit a new all-time high on Wednesday at $67,000 and recorded 126% gains YTD.

Jones also called cryptocurrency “the single biggest threat to financial markets.”

The latest rally came amidst the launch of the first US bitcoin-linked exchange-traded fund. In just two days, ProShares Bitcoin Strategy ETF has amassed over $1 billion in assets.

But much like the crypto community, Jones said he would rather own Bitcoin itself than the futures-tied ETF. Still, the ETF will do just fine, said Jones adding, investors should “take great comfort” that it’s been approved by the U.S. Securities and Exchange Commission (SEC).

The crypto bull also talked about being worried about inflation which he said poses a major threat to the US financial markets and the recovering economy.

To Tudor Jones, inflation is not transitory, as Federal Reserve Chairman Jerome Powell has been saying. Last week, data from the Labor Department showed that the consumer price index rose 0.4% from August and 5.4% from the prior year, the largest annual gain since 2008.

But Fed economists still predict inflation to be back under 2% next year, according to the minutes from last month’s Federal Open Market Committee (FOMC).

This is “absolute death” for the traditional portfolio structure of 60% stocks and 40% bonds, said Tudor Jones, adding, the Fed’s current monetary policy is the most inappropriate and that Powell may not be the best person to run the central bank right now.

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Author: AnTy

World’s Leading Index Provider Launches Three New Digital Asset Indices

S&P Dow Jones Indices, the world’s leading index provider, which is behind S&P 500 and the Dow Jones Industrial Average, has officially launched its new series of digital asset benchmarks, the S&P Digital Market Indices.

These new indices will be measuring the performance of cryptocurrencies. It covers the top two cryptos, with additional coins to be included later this year.

At launch, it includes three indexes, including S&P Bitcoin Index, S&P Ethereum Index, and S&P Cryptocurrency MegaCap Index; the last one will measure the performance of BTC and Ether.

The indices will use pricing data from crypto software and data provider Lukka.

With these indices, S&P Dow Jones aims to make it easier for investors to access the emerging asset class while potentially mitigating some common risks in this “speculative market” and bringing transparency to what it calls an “exciting” market.

“Traditional financial markets and digital assets are no longer mutually exclusive markets,” said Peter Roffman, Global Head of Innovation and Strategy at S&P Dow Jones Indices. “As cryptocurrency becomes more mainstream, investors now have access to reliable and transparent benchmarks backed by institutional quality pricing data.”

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Author: AnTy

Paul Tudor Jones Says 5% of Portfolio in BTC; A Store of Wealth the Same as Gold, Cash, & Commodities

Paul Tudor Jones Says 5% of Portfolio in Bitcoin; A Store of Wealth the Same as Gold, Cash, and Commodities

Paul Tudor Jones says “Go All-In” and “Buy Crypto”, Gold & Commodities if Fed Doesn’t Create A “Taper Tantrum” This Week

Legendary investor Paul Tudor Jones who called Bitcoin the “fastest horse” and was one of the first prominent investors to jump in on the cryptocurrency is now recommending 5% of a portfolio in the crypto asset.

To him, it is a way to “protect my wealth” as “over time it’s a great diversifier.”

“I look at bitcoin as a story of wealth. I look at crypto as a story of wealth. Others will argue this is a different ecosystem. It’s transactional in nature.”

Jones’ bullish comments on Bitcoin came during his interview on CNBC’s Squawk Box where he talked about inflation and how the Federal Reserve is handling monetary policy.

“You wonder why Bitcoin has a $2 trillion market cap and gold is at $1,865 an ounce. And the reason is that you have this dichotomy and policy that again questions the institution’s credibility.”

The hedge fund manager is paying close attention to this week’s Fed two-day policy meeting, which is scheduled to conclude Wednesday, in the light of recent higher consumer prices.

“If they treat these numbers… they were very material — if they treat them with nonchalance, I think it’s just a green light to bet heavily on every inflation trade.”

“If they say, ‘We’re on path, things are good,’ then I would just go all-in on the inflation trades. I’d probably buy commodities, buy crypto, buy gold.”

This is because transitory inflation doesn’t work for him, that is not how he sees the world.

In contrast, “taper tantrum” would mean correction but “that doesn’t necessarily mean it’s over,” added the founder and chief investment officer of Tudor Investment Corp.

A Great Portfolio Diversifier

According to Jones, the crypto asset is a great portfolio diversifier and he prefers 5% of his portfolio in it just like cash, gold, and commodities.

“I like bitcoin as a portfolio diversifier. Everybody asks me what should I do with my bitcoin. The only thing I know for certain is I want 5% in gold, 5% in Bitcoin, 5% in cash, and 5% in commodities. I don’t know what I will do with the other 80%. I want to wait and see what the Fed will do because what they do will have a big impact.”

When asked about his stance on cryptocurrency, the billionaire investor likened Bitcoin to math, saying:

“I like the idea of investing in something that is reliable, consistent, honest, and 100% certain.”

It is Bitcoin’s mathematical certainty that has appealed to him as it is in contrast to the unpredictability of the central bank’s policy which has the involvement of the human element.

“Bitcoin has appealed to me because it is a way for me to invest in certainty. Again, I look at the difference between the Fed of 2013 and the Fed of 2021. I look at the difference between Trump and Biden. Do I want to have faith in that same reliability and consistency of human nature and the linear nature of human nature which we know is anything but that?”

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Author: AnTy

Another Company Goes All-in In Bitcoin; ‘A Much Better Alternative To Saving Cash’

After billionaire investor Paul Tudor Jones and MicroStrategy, now a small company, a restaurant called Tahinis that specializes in middle eastern cuisine has jumped into Bitcoin.

The company took to its Twitter account to share that they have converted their “entire” cash reserves, originally used as savings, into Bitcoin.

The Ontario, Canada-based restaurant operates in four corporate locations with further plans to open three franchises.

The decision was made by the owners in the aftermath of the March coronavirus crisis during which they tried to keep the restaurants afloat amidst the expansion phase.

Here came the central bank assistance in the form of money printing that has not only the company owners but also the employees, some of them were also partners, making “a lot of money.” The tweet reads,

“Our Cash reserves swelled and business was booming again. But it was apparent to us that cash didn’t have the same appeal. That eventually with all the excess cash circulating the economy that cash would be worth less.”

Already aware of cryptocurrencies, one of the company owners went into the bitcoin rabbit hole while expanding his financial knowledge, although his investor idol Warren Buffett called it “rat poison squared.”

Given that in the current rallying markets is outperforming Buffett who has been selling his banking holdings to jump into gold now, it is best to not take the Oracle of Omaha’s word about bitcoin. Not just gold, but Buffett has been late to the party when it comes to the internet and Apple as well.

More Returns & a Lot More…

So, first, the Tahini restaurant owner started accumulating in his personal account and from there “we as a company decided to store all of our excess cash reserves into bitcoin as it offers a much better alternative to saving cash.”

They are planning to “continue to do that over the coming years and maybe forever if we don’t have a need for the fiat.”

Given the fact that in 2020 so far, Bitcoin outperforms S&P 500, gold, Treasuries, and oil, it makes sense to move into Bitcoin. However, industry experts caution on going all-in in Bitcoin, rather advise investing a certain percentage as the crypto market is extremely volatile.

Besides being an attractive investment asset and becoming a store of value, embracing bitcoin also helps the companies in attracting interest. MicroStrategy stock has jumped 20% following the announcement.

Moreover, owning cash on the balance sheet is “quite onerous,” as it requires keeping multiple global checking accounts that involve time, expensive fees, and delayed settlement, said Jeff Dorman, chief investment officer at Arca.

Meanwhile, owning Bitcoin means reducing reliance on third parties, lower transaction costs, potentially increasing yield, and increasing payment flexibility — “a nice byproduct of a corporate finance department entering the digital world.”

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Author: AnTy

Something New & Better will Replace Bitcoin In Coming Decades: Binance CEO CZ

Bitcoin dominance has dropped 8.5% since May 7 when Paul Tudor Jones announced that his company is investing in BTC.

Since early 2016 when bitcoin’s dominance was at 98.98%, it has fallen more than 38%. And according to Binance co-founder and CEO Changpeng Zhao, it will continue to fall.

“I think bitcoin’s dominance over time will decrease,” though it may increase in the short term, said CZ in a recent interview.

This is because although there’s a lot of innovations people can bring back on bitcoin such as the second layer of solutions when technology is out already and is adopted for 10 years, there’s relatively more limited scope for an update, he said.

He explained how we saw it with almost every technology such as software and programming languages. Whether it’s the internet, browsers, search engines, or social networks, no one is using the original ones.

Also, “nothing lasts forever,” as the companies like IBM and Microsoft, that were once strong, are no longer the biggest and most valuable firms. Although they are still big.

“If you look at 10, 20, 50 years later I think it’s totally conceivable that something new will replace bitcoin,” said CZ.

He doesn’t think we will lose bitcoin as it has already passed the “limited test” or move back into fiat but “something better than bitcoin” will come along and “people always invest in things that are new and better.”

Well, the crypto market has found its new shiny toy in the form of DeFi (decentralized finance) which CZ is a “very strong proponent,” along with staking. These latest things he believes will “increase adoption of crypto” but at the same time warns that this new stuff will have “very inherent high risk.”

Also, according to him, an “overwhelmingly large proportion” of the DeFi projects will fail and only a handful will survive.

During his interview, CZ also touched upon the bitcoin Segwit addresses implementation on the exchange which Binance “definitely” wants to add Segwit.

They are working on it, but segwit support requires a lot of customizations — “pretty much have to rewrite the wallet ourselves” as such, it will take time.

“I don’t know exactly when but we’ll get there sooner or later but it won’t be too soon,” he said.

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Author: AnTy

Bullish Catalyst on the Horizon: Fed’s Major Policy Change

US stocks started Monday on a muted note with S&P 500 down 0.2% and The Dow Jones Industrial Average -0.6%, while the Nasdaq Composite is up 0.5%.

The slow start of the week is because of the hurdles facing new stimulus packages and business’ dimming outlook while rising coronavirus infections threaten to hamper the economic recovery.

Former Federal Reserve Chairs Ben Bernanke and Janet Yellen meanwhile called for Congress to provide more fiscal stimulus to the U.S. economy.

While the government and central bank continue to provide more fuel for stocks, hedge fund billionaire Leon Cooperman said the market is overvalued, and overlooking “a number of things,” including the growing national debt.

The US Dollar has been falling and is now nearing its lowest levels since the start of the pandemic. Gold prices are little changed trading at $1,811.04 an ounce. But according to Citigroup, bullion could hit a new ATH in the next six-to-nine months.

Bitcoin meanwhile is the same as ever, stuck just above $9,000, for the past month. The range has been only getting tighter and tighter while altcoins are stealing the thunder. It is actually the tightest monthly range in bitcoin’s history.

While bitcoin’s extremely low volatility is expected to see a huge move soon, the Federal Reserve is also looking to keep the stock market happy.

Major bullish catalyst

After unprecedented money printing, the Fed is ready to push the inflation rate above its 2% target.

The traditional Phillips curve, which relies on the theory that inflation accelerates unemployment falls, is now approaching forecasting inflation. The Fed continued to raise interest rates till late 2018 when it was forced to lower it 2019, keeping inflation below the 2% target. Now, faced with the prospect of low inflation, the Fed is signaling an increase. Fed Governor Lael Brainard said last week,

“With inflation exhibiting low sensitivity to labor market tightness, the policy should not preemptively withdraw support based on a historically steeper Phillips curve that is not currently in evidence.”

Brainard said the Fed should focus on the kind of employment outcomes achieved late in the previous recovery. She is saying that the Fed should not tighten policy until inflation reaches 2%, relying on actual inflation outcomes to determine the appropriate time to modify policy than to rely on an inflation forecast. Federal Reserve Bank of Philadelphia President Patrick Harker said,

“I don’t see any need to act any time soon until we see substantial movement in inflation to our 2% target and ideally overshooting a bit.”

Bloomberg says the implication of this for financial markets would be that the Fed expects to “hold policy very easy for a very long time.”

The ultra-loose policy, as we have seen in 2020, has been working out well for stock markets, which are closer to hitting their new all-time highs. Economist and trader Alex Kruger said,

“Major bullish catalyst in the horizon: the Fed letting inflation rise above 2%. Assets to benefit the most are our 2020 friends: stocks, precious metals, and TIPS (as real rates go more negative).”

While a rising SPX, increasing inflation, and ultra-loose monetary policy speak well for bitcoin’s prices, the last couple of months doesn’t reflect strongly on the digital asset.

But with the bitcoin market expecting bitcoin to rally soon and its correlation with equities market strong, these factors may help kickstart a bull run.

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Author: AnTy

Hedge Fund Manager Paul Tudor Jones Has Almost 2% Of His Assets In Bitcoin

Just last week, macro investor Paul Tudor Jones revealed that he is buying bitcoin through CME bitcoin futures contracts and sees it as a hedge against inflation.

Now, in today’s interview with CNBC, the long time hedge fund manager shared that he has almost two percent of his assets in Bitcoin.

Economist and trader Alex Kruger deduced this almost 2% allocation to about $430 million based on Tudor BVI fund’s asset under management at $21.6 billion as of March 30.

If he allocated his personal assets, it would amount to under $100 million.

This “seems like the right number right now,” said Jones adding “it’s not for me, it’s not the greatest, it’s not the great cure for all the materials, it’s great speculation that’s what I would say Bitcoin is.”

Cash is a “wasting asset in your hands”

During his interview, he talked about why despite being a skeptic of bitcoin and cryptocurrencies for a long time, he changed his mind about digital assets.

What changed was COVID and the great monetary inflation. This made him think about “how you want to be positioned in your portfolio going forward. So, that’s really what trips my interest in Bitcoin,” said Jones.

Comparing Bitcoin to cash, he explained when it comes to stores of value, it’s about four things — purchasing power, trustworthiness, liquidity, and portability. He said,

“When it comes to trustworthiness, bitcoin is 11 years old and there’s very little trust in it. But We’re watching the birth of a store of value.

Whether that succeeds or not only time will tell. What I do know is that every day that goes by and bitcoin survives, the trust in it will go up.”

However, when it comes to cash, from a purchasing power standpoint,

“if you own cash in the world today you know your central bank has an avowed goal of depreciating its value, 2% per year. So, you have in essence a wasting asset in your hands.”

Bitcoin has yet to stand the test of time like gold

The world is going virtual right now, especially after the lockdown put in place all over the globe because of coronavirus. And this digitization of the world benefits bitcoin, he said.

The increasingly digitized world means Bitcoin will be that much more accessible by the universe of people that could own it as a store of value.

He explained how every single bull market has one common thread — an ever-expanding universe of people who own it.

In bitcoin’s case, there’s probably between 55 and 70 million people in Bitcoin. If you’re buying Bitcoin your bet is that number is going to go to 120 million or to 200 million.

It’s kind of hard in a world that’s becoming increasingly digitized not to think that’s happening although evidence at this point doesn’t agree to it. Jones said,

“But when I think of Bitcoin I look at it is one tiny part of a portfolio. It may end up being the best performing of all of them.”

But he’s conservative in allocation because “it has not stood the test of time, for instance, the way the gold has, which has been a store value for twenty-five hundred years.”

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Author: AnTy

Paul Tudor Invests In Bitcoin Futures, a Catalyst for BTC/USD Price Surge?

Paul Tudor Jones, hedge fund manager and philanthropist will pivot part of his client’s funds into bitcoin futures. The move intends to curb the effects of a devaluing dollar through inflation as the Federal Reserve prints trillions of dollars into circulation.

Jones made his intentions clear in a note to his customers titled “The Great Monetary Inflation,” commenting “If I am forced to forecast, my bet is it will be Bitcoin.” His fund, Tudor BVI, may reportedly hold a single-digit percentage in the virtual currency.

“We are witnessing the Great Monetary Inflation — an unprecedented expansion of every form of money unlike anything the developed world has ever seen,” wrote Jones. He also worked out that 6.6 percent of the world’s economic output was printed since February in response to the ongoing coronavirus pandemic.

Tudor is said to have considered various other financial instruments before finally settling on bitcoin, including gold, bonds, stocks, currencies, and commodities.

Part of Tudor’s affection for bitcoin could have come from a profitable trade he allegedly made in 2017 near the peak of its all-time high of $20,000 that doubled his money. This time, however, he says is due to the fact that bitcoin has four important qualities: liquidity, portability, trustworthiness, and purchasing power.

In spite of seeing these positives, Tudor states that he is “not a hard-money or crypto nut,” but instead sees it as an inevitable step of money becoming virtual, accelerated by Covid-19.

Still, Tudor is undeniably bullish on the world’s largest cryptocurrency “bitcoin reminds me of gold when I first got into the business in 1976,” he wrote.

Bitcoin, which saw the price of BTC/USD exchange rate start the 2020 decade at around $7,100, has already rose to a 2020 high of $10,300 around the middle of February, and a low point of $3,800 on March 12, has already recovered with an 8 week straight rise to surging past the $9,900 range. While many believe there are many factors in the bullish sentiment the number one leading cryptocurrency is enjoying, whether it be the fact it is up 1,500%+ since its July 9, 2016 halving or the fact that Paul Tudor is purchasing bitcoin, one thing is for certain – the future is bright and despite being 11 years into this thing, while the third of thirty three halvings is set to take place, momentum is back in the crypto ecosystem and bitcoin is leading the charge.

Latest Bitcoin Price News and Crypto Market Updates

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Author: Matthew North

Binance CEO Isn’t Worried About Bitcoin, Says “Demand is Increasing”

On February 17, the Dow Jones Industrial Average was near its peak at 30,000, driven by the longest US economic expansion in history. During that time, bitcoin was trading above $10,000. Over the next thirty days, the coronavirus (Covid-19) burst out of China with major outbreaks in Italy, South Korea, France, Spain, Germany, the UK, and the USA.

As countries shut down their borders and people were asked to be quarantined in their homes, businesses came to a sudden stop. The stock markets went into a meltdown and forced central banks to take emergency actions not seen since the 2008 global financial crisis.

The world’s leading cryptocurrency also crashed to $3,850 which was because of those relatively new to crypto who sell when they feel there are risks. Also, those who depend on short term gains in their investment portfolios to pay rent were forced to sell crypto to cover their living expenses.

According to the founder and CEO of Binance, Changpeng Zhao, when people fear the doomsday, they hoard cash with increased pressure to sell investments. But they will “eventually find out they no longer need to hoard it and will put it back on investment.”

But despite this Zhao isn’t “worried about crypto at all.”

“The fundamentals did not change. Unlike fiat, bitcoin remains a currency with limited supply. No one can print more of it. Demand is increasing, especially now. It will be fine,” said Zhao.

Things aren’t black or white but greyscale and fundamentally crypto still works and with fiat being printed at a record pace, “you decide what will happen, in time.”

But that would happen eventually as Zhao explained currently, “Markets are inefficient. The speed of change propagation is slow, which actually gives us plenty of opportunities.”

Binance founder is extremely bullish on Bitcoin and cryptocurrencies and the reason behind this is the broken current system which he said bitcoin fixes.

With central banks printing out money to bail companies out, “the taxpayers are robbed (made poorer) indirectly.” And bitcoin fixes this.

With cryptocurrencies, things are different because there are no government bailouts which he said, “breaks the cycle.”

But it doesn’t mean, problems will be magically solved as companies will still fall and users will still get hurt.

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Author: AnTy

Coronavirus Outbreak Setting Up ‘Very Bullish’ Coming Months for Bitcoin And Crypto Market

  • Dow Jones Industrial Average had its worst day since August and S&P 500 since October
  • “The current backdrop for gold is stereotypical of strong phases,” as gold scored a second straight monthly climb
  • BTC already up 27% YTD and gain further as coronavirus to lead to rate cuts and another round of quantitative easing

In one of its biggest declines, the Dow Jones Industrial Average fell by over 600 points on Friday as investors grew increasingly worried about the potential economic impact of deadly coronavirus.

While Dow had its 30-Stock average’s worst day since August, S&P 500 also had its worst day since October and the Nasdaq Composite fell 1.6%. This happened after the US declared the coronavirus a public health emergency within the country and American, Delta and United suspended all flights between the US and China.

Fear going into the weekend

First discovered in the Chinese city of Wuhan, the virus has now spread to at least 18 other countries. China’s National Health Commission confirmed 9,692 cases of the coronavirus with 300 deaths. The WHO also recognized the virus as a global health emergency on Thursday.

“There’s fear going into the weekend,” said Ilya Feygin, senior strategist at WallachBeth Capital.

“The theme coming into this year was the Fed and Trump are going to bail us out of any problems, but the virus is something neither one can do anything about. That’s a reason to become more fearful.”

Morgan Stanley’s chief US equity strategist, Michael Wilson says a major stock market pullback since October may be underway.

Gold scored a second straight monthly rise

Meanwhile, gold though pulled back from over six-year high scored a second straight monthly climb.

“The current backdrop for gold is stereotypical of strong phases,” said Adrian Ash, director of research at BullionVault.

“Over-priced stock markets are wobbling, global growth is slowing hard, and political uncertainty is worsening.”

“We are operating in an environment in which safe assets are scarce … Investment demand will continue to flow to gold because capital is seeking shelter from negative real yields,” said TD Securities commodity strategist Daniel Ghali.

Setup for the crypto market in coming months very bullish

Bitcoin meanwhile is holding steady above $9,000 since Tuesday. Currently, BTC/USD is trading at $9,413, up 27% YTD.

As can be seen, crypto markets have diverged from the equity markets ever since we entered into a new year.

While market strategist and economists were “talking up the global economic outlook and hailing 2020 as a good year for markets with no major risks on the horizon,” in two weeks the deadly coronavirus outbreak has changed that prognosis, said the former partner at Goldman Sachs, Spartan Black of crypto hedge fund The Spartan group.

With the affected cities coming to a halt, the factory output in the near term would be affected. And the “travel curbs and related impact will likely take a few bps off global GDP growth in the next 2-3 quarters. The equity markets have started to price that in. Further signs of weakness and market instability may cause central banks to spring into action,” said Spartan Black.

That means, further rate cuts and another round of quantitative easing are likely to follow with the ECB already having started its bond-buying program in Sept. All of this combined with halving event coming up, “the setup for the crypto market in coming months is very bullish,” he said.

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Author: AnTy