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Paul Tudor Jones Is Using Crypto to Hedge Against Inflation

The billionaire hedge fund manager says inflation is `biggest threat’ to the economy.

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Down the Bitcoin Rabbit Hole

Paul Tudor Jones is betting on crypto as a hedge against inflation, which he called “the single biggest threat to financial markets.”

The billionaire founder of hedge fund Tudor Investment Corp. said that he prefers digital assets over traditional hedges like gold, and has “crypto in single digits in my portfolio.”

“We're moving into an increasing digitized world,” Tudor Jones said Wednesday in an interview on CNBC’s “Squawk Box.’’ “Clearly there's a place for crypto, and clearly it’s winning the race against gold at the moment.”

Financial managers across Wall Street have been watching for signs that inflation will tick higher and pose a risk to the equity market’s historic rally. 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. 

Still, Federal Reserve economists predict that inflation will be back under 2% in 2022, according to the minutes from last month’s Federal Open Market Committee. 

To Tudor Jones, the inflation genie is out of the bottle, which is “absolute death” for the traditional portfolio structure of 60% stocks and 40% bonds. He said that the Fed’s current monetary policy is the most inappropriate in his lifetime and that Jerome Powell may not be the best person to run the central bank right now.