Billionaire Paul Tudor Jones Says ‘I Like Bitcoin’ — Will Go All in on Inflation Trades if Fed Says ‘Things Are Good’

Billionaire Paul Tudor Jones Says 'I Like Bitcoin' — Will Go All in on Inflation Trades if Fed Says 'Things Are Good'

Billionaire hedge fund manager Paul Tudor Jones says he likes bitcoin. Noting that he can trust math, the famed hedge fund manager said, “bitcoin has appealed to me because it’s a way for me to invest in certainty.” Jones also shared his investment strategies in response to the Fed’s policy.

Paul Tudor Jones on Bitcoin, Fed Policy, Inflation

Paul Tudor Jones, the founder of asset management firm Tudor Investment Corp., explained to CNBC Monday why he likes bitcoin. He described:

I like bitcoin. Bitcoin is math and math has been around for thousands of years. 2+2 is going to equal 4 and it will for the next 2,000 years. So, I like the idea of investing in something that’s reliable, consistent, honest, and 100% certain. So, bitcoin has appealed to me because it’s a way for me to invest in certainty.

“I look at the difference between the Fed in 2013 and Fed of 2021 … I look at the difference between Trump and Biden,” Jones noted. “Do I want to have faith and that same reliability and consistency in human nature?”

When asked if he likes bitcoin at the current price, Jones replied:

I like bitcoin as a portfolio diversifier … The only thing that I know for certain is I want to have 5% in gold, 5% in bitcoin, 5% in cash, 5% in commodities at this point in time.

“I don’t know what I want to do with the other 80%,” the famed hedge fund manager admitted. “I want to wait and see what the Fed is going to do because what they do will have a big impact.”

A 5% allocation is a significant increase from his earlier allocation of between 1% and 2% that he revealed last year.

He further shared, “I have a defensive position in bitcoin to protect myself, my family, and our wealth over time.” He also said he does not look at the price of bitcoin anymore, implying that he is a hodler.

Jones also offered his views on inflation and the upcoming Federal Reserve meeting. He said the Fed meeting this week could be the most important meeting in Chairman Jay Powell’s career, and “certainly the most important Fed meeting of the past four or five years.” Clarifying why the meeting is so important, he said:

The reason why is because we’ve had so much incoming data that challenges both their mission and their model. So how they react to that will be extraordinarily important and I think for investors as to how they should deal with their portfolios going forward.

Jones explained that consecutive consumer price index readings put price pressures well ahead of the Fed’s 2% inflation goal. However, Fed officials continue to insist that the current readings are transitory and unlikely to persist. Jones disagreed, emphasizing that “It’s an intellectual incongruity that risks damaging their forecasts if they’re wrong on inflation.”

Referring to recent economic data showing higher consumer prices, Jones said: “If they [the Fed] treat these numbers, which were material events, 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.” He further opined:

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.

On the other hand, Jones predicted: “If they course correct, if they say, ‘We’ve got incoming data, we’ve accomplished our mission or we’re on the way very rapidly to accomplishing our mission on employment,’ then you’re going to get a taper tantrum.” He concluded: “You’re going to get a sell-off in fixed income. You’re going to get a correction in stocks. That doesn’t necessarily mean it’s over.”

What do you think about Paul Tudor Jones’ comments on bitcoin and the Fed policy? Let us know in the comments section below.

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Goldman Sachs Expands Cryptocurrency Trading Desk With Ether Futures and Options

Goldman Sachs Expands Cryptocurrency Trading Desk With Ether Futures and Options

Investment bank Goldman Sachs has reportedly unveiled its plans to expand its cryptocurrency desk to offer ether futures and options trading. The bank says “institutional adoption will continue,” noting that “Despite the material price correction, we continue to see a significant amount of interest in this space.”

Goldman Sachs Gets Ready to Offer Ether Futures and Options Trading

Goldman Sachs’ head of digital assets, Mathew McDermott, has reportedly revealed that the global investment bank plans to offer futures and options trading in ether (ETH) in the coming months, Bloomberg reported Monday.

McDermott said in a phone interview with the publication Thursday:

We’ve actually seen a lot of interest from clients who are eager to trade as they find these levels as a slightly more palatable entry point. We see it as a cleansing exercise to reduce some of the leverage and the excess in the system, especially from a retail perspective.

The executive additionally said that Goldman Sachs plans to offer the trading of bitcoin exchange-traded notes.

Goldman Sachs formally established a cryptocurrency trading team in early May after seeing huge institutional demand for cryptocurrency. The investment bank also recently said that bitcoin is now a new asset class. In May, the firm led the $15 million investment into crypto data provider Coin Metrics. McDermott added, “We are looking at a number of different companies that fit into our strategic direction.”

Goldman Sachs has said on several occasions that institutional interest in bitcoin has been growing significantly. In a survey of 850 institutions last week, the bank found that almost one in 10 respondents are trading cryptocurrencies and 20% are interested in the asset class.

McDermott further detailed:

Institutional adoption will continue. Despite the material price correction, we continue to see a significant amount of interest in this space.

What do you think about Goldman Sachs offering ether options trading? Let us know in the comments section below.

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Latin American Countries Eye Bitcoin Adoption After El Salvador Passed Bitcoin Law

Latin American Countries Eye Bitcoin Adoption After El Salvador Passed Bitcoin Law

A number of lawmakers in Latin American countries have expressed their interest in bitcoin following El Salvador passing the law making the cryptocurrency legal tender. The countries include Paraguay, Argentina, Panama, Brazil, and Mexico. Tonga and Tanzania have also reportedly expressed interest in bitcoin.

More Countries Eye Bitcoin Adoption

After El Salvador passed the bill making bitcoin legal tender alongside the U.S. dollar, a growing number of lawmakers in neighboring countries have either expressed their interest in making a similar move or put laser eyes on their Twitter profile pictures.

The laser eyes meme has swept through the bitcoin community since February with the underlying meaning that anyone donning the eyes is laser-focused on bitcoin’s price rising to $100,000. Politicians, celebrities, and investors have partaken and put laser eyes on their profile images.

Gabriel Silva, Member of Parliament in Panama, tweeted congratulating El Salvador when the bitcoin law was approved. “Good news for El Salvador who is teaching the government of Panama in entrepreneurship and technology. We have to think beyond the canal and free zones, betting on the knowledge economy, quality education for all and facilitating new businesses.” He emphasized:

This is important, and Panama cannot be left behind. If we want to be a true technology and entrepreneurship hub, we have to support cryptocurrencies. We will be preparing a proposal to present at the assembly.

Carlitos Rejala, a congressman and the National Deputy of Paraguay, has called for his government to take similar action to El Salvador. Putting laser eyes on his profile picture, he tweeted: “As I was saying a long time ago, our country needs to advance hand in hand with the new generation. The moment has come, our moment.”

Fábio Ostermann, an elected member of the Legislative Assembly in Rio Grande do Sul, Brazil, has also put laser eyes on his profile picture. Argentina’s deputy Francisco Sánchez also temporarily put laser eyes on his profile picture, tweeting, “I can’t believe it, but this is how it is.”

Commenting on the growing list of countries becoming interested in bitcoin after El Salvador’s bitcoin law passed, Tyler Winklevoss, co-founder of cryptocurrency exchange Gemini, tweeted last week:

First they ignore you, then suddenly Paraguay, Argentina, Panama, Brazil, El Salvador, Nicaragua embrace bitcoin.

Several lawmakers in Mexico also put laser eyes on their profile pictures, including Senator Indira Kempis, who replied to the tweet by Tyler Winklevoss with an emoji of the flag of Mexico. Moreover, Senator Eduardo Murat Hinojosa has announced plans to bring a regulatory proposal on cryptocurrencies before the national Legislative Branch. He tweeted last week:

I will be promoting and proposing a legal framework for cryptocurrencies in Mexico’s lower house.

Some other countries that have expressed interest include Tonga, a Polynesian country, and Tanzania, an East African country. President Samia Suluhu Hassan has called on the Tanzanian Central Bank to begin working on facilitating the widespread use of cryptocurrencies in the country. In Tonga, Lord Fusitu’a, Member of Parliament of the Kingdom of Tonga, is a bitcoin advocate. He has laser eyes on his Twitter profile picture and has attended a Twitter spaces meeting with bitcoiners to discuss how his country can benefit from the cryptocurrency.

El Salvador could set a trend of nations adopting bitcoin. JPMorgan recently said that “similarly situated” countries could follow El Salvador’s move to make bitcoin legal tender. Meanwhile, the International Monetary Fund (IMF) says it sees legal and economic issues regarding this move by El Salvador.

Do you think more countries will make bitcoin legal tender like El Salvador? Let us know in the comments section below.

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