Legendary Investor Paul Tudor Jones Says Bitcoin Belongs in an Inflation-Resistant Portfolio

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.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/VRZ4lzkbRNLooking 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.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/XCR8vkIx5TJones 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.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.Get Started on eToroeToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong.