Paul Tudor Jones, the American hedge fund manager at Tudor Investment Corporation announced that he is buying Bitcoin as a hedge. This is due to the inflation he sees coming from central bank money-printing, he tells his clients in a recent note. The news about Paul Tudor Jones entering the crypto market broke, only days before the Bitcoin price plunged 20%.

In the note, called ‘The Great Monetary Inflation’ Mr. Jones and Lorenzo Giorgianni discuss the growing global debt at a macro perspective.

He states that a total of $3.9 trillion, which is equal to 6.6% of all global economic output has been printed since February of this year. He writes in this note that,“ We are witnessing the Great Monetary Inflation — an unprecedented expansion of every form of money unlike anything the developed world has ever seen.”

He has therefore announced, that Bitcoin has passed the test based on its purchasing power, trustworthiness, liquidity and portability. He has also evaluated it as  a store-of-value.

“Bitcoin reminds me of gold when I first got into the business in 1976,” he wrote.

Jones, would be the first hedge fund manager to hold Bitcoin futures. Although was said to have dabbled in Bitcoin in 2017, he doubled his money and left when it hit is $20,000 peak. He writes:

”I did have some experience with it back in 2017, having a tiny amount in my personal account for fun. Amazingly, I doubled my money and got out near the top when it was apparent to any market technician we were blowing off. It is amazing how well one can trade when there is no leverage, no performance pressure and no greed to intrude upon rational reflection!”

In early January, Paul Tudor Jones was on CNBC and claimed that the euphoria in the stock market reminded him of 1999, before the dot-com crash. This was two months prior to when S&P500 shed 30% during the corona crisis.

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