Billionaire hedge fund manager Paul Tudor Jones is buying bitcoin, Bloomberg reported on Thursday.
Jones told his clients in a market outlook note that he believes bitcoin will serve as a hedge against a jump in inflation he thinks is coming, due to central banks printing money and sharply expanding their balance sheets amid the coronavirus pandemic.
Jones said bitcoin “reminds him of the role gold played in the 1970s,” according to the report.
“The best profit-maximizing strategy is to own the fastest horse. If I am forced to forecast, my bet is it will be Bitcoin,” Jones said in the client note.
One of Jones’ funds, Tudor BVI, may hold as much as a low single-digit percentage of its assets in bitcoin futures.
Jones is the founder and CEO of Tudor Investment Corp., a hedge fund that managed $38.4 billion as of March 30, according to data from the Securities and Exchange Commission.
Bitcoin traded up as much as 6.5% on Thursday to $9,911.
Author: finanzen.net GmbH
This is how Bitcoin, Litecoin & Co. are developing on the crypto market today
The Bitcoin price was trading at $ 9,293.16 on Thursday. The Bitcoin price climbed above the previous day's level of $ 9,150.38.
The Bitcoin Cash rate has risen. The Bitcoin cash price rose to $ 243.70 after trading the previous day at $ 241.44.
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Here you can easily buy and sell Bitcoin
The Ethereum price climbed to $ 204.40. The Ethereum exceeded the previous day's level of $ 198.90.
The Litecoin rate soared to $ 45.84. The previous day's price was at $ 44.99.
The ripple rate is trading at $ 0.2144 on Thursday. The ripple price rose above the previous day's level of $ 0.2116.
The Cardano course dropped compared to the previous day. A Cardano is currently worth $ 0.0494. Yesterday the price was still at $ 0.0500.
The Monero price has risen to $ 59.50 today, while it was trading at $ 59.56 the previous day.
The IOTA course presents itself with a green sign compared to the previous day. The most recent IOTA stood at $ 0.1808.
The Verge course climbed on Thursday. At noon, the Verge rose to $ 0.0039, from $ 0.0036 the previous day.
The Stellar course is presented in a plus. This is currently trading at $ 0.0721. The previous day, the price had been $ 0.0715.
The NEM is down $ 0.0408. The day before, the rate of the digital currency was still $ 0.0415.
The dash price dropped to $ 77.68. The previous day, the cryptocurrency was still worth $ 79.09.
The exchange rate for the digital currency NEO is now up at $ 9.279. The previous day's price was $ 9.247.
Editorial office finanzen.net
Billionaire Paul Tudor Jones: ‘My bet is it will be bitcoin’ as the best inflation hedge
Billionaire investor Paul Tudor Jones made a prescient call on bullion in 2019; now he’s saying that bitcoin, the controversial digital currency, reminds him of gold in the 1970s, and may be the best hedge against inflation in the age of coronavirus.
The famed hedge-fund investor, writing in a recent research note, cited unprecedented money-printing and stimulus measures by the Federal Reserve and the U.S. government amid the COVID-19 pandemic as key reasons behind his newfound appetite for the world’s most prominent cryptocurrency.
“The best profit-maximizing strategy is to own the fastest horse,” Jones said in a market outlook note “The Great Monetary Inflation.” Bloomberg News was the first to report on the investment manager’s bitcoin shift.
Jones says that the investment reminds him of gold in the 1970s.
Last year, Jones said a cocktail of a dovish Fed and heightened geopolitical tensions created an atmosphere to buy gold and stocks, which turned out to be a winning strategy.
Jones said told Bloomberg in an interview last June that if gold “goes to 1,400, it goes to 1,700 rather quickly,” referring the potential for bullion prices to catapult sharply higher.
Gold prices for June delivery on Thursday settled at $1,725.80 an ounce on Comex, and have gained 13.4% so far in 2020 and 34.4% over the past 12 months.
Jones is widely credited with predicting, and profiting, from the stock-market crash on Oct. 19, 1987, which saw the Dow lose nearly 23% of its value, marking the largest one-day percentage decline for the blue-chip benchmark in its history.
Jones became known for trading everything from currencies to commodities. His record has featured middling returns and an exodus of billions of dollars from his hedge fund in more recent years. Jones boasts a net worth of $5.1 billion, according to Forbes.
Bitcoin bulls have been pointing to growing interest in bitcoin as the digital currency goes through a closely watched event: the halving.
The halving, which takes place on May 12, refers to bitcoin’s software underpinnings. Those who support the digital-ledger technology, or blockchain, are rewarded with bitcoins every 10 minutes for expending massive amounts of computing power, that reward will be cut from 12.5 to 6.25 coins. A halving occurs every four years and this event would mark only the third time since the crypto-asset was engineered 11 years ago.
Read:Don’t look now—much-maligned bitcoin is outperforming gold and bullish investors are eyeing $10,000 and beyond
Author: Mark DeCambre
Market Wrap: Bitcoin at $9.9K as Halving Chatter Increases
The price of bitcoin continues its rise ahead of next week’s anticipated halving. That event is trending as a topic on social media, even as few appear to be considering what may happen after it’s over.
At press time bitcoin (BTC) was trading up 6.5% over 24 hours, currently at $9,882. It’s been on a run upward on high volume since 12:00 UTC (8 a.m. ET), moving from $9,270 during that time to as high as $9,971 on spot exchanges like Coinbase.
Discussion of “bitcoin halving,” the once-every-four-year event that will lower by half the supply of new bitcoins awarded to miners, has spiked higher than ever over the past week, according to social media data tracked by data aggregator LunarCRUSH. “After months of suppression, mentions of the bitcoin halving event on social media have now exploded,” Mati Greenspan, founder of Quantum Economics, noted in a tweet.
Bitcoin’s price climb could be partially attributed to new investor interest in the midst of the recent economic tumult, says Matthew Ficke, head of market development for cryptocurrency exchange OKCoin. “This halving has received an incredible amount of publicity, far surpassing previous halvings particularly against the backdrop of the traditional financial markets.”
Many newer crypto investors see that, historically, bitcoin’s price has gone much higher, and it can rise to those levels again, Ficke points out. “BTC/USD topped out around $10,400 in October 2019 and February 2020, so it is reasonable to view this as a short-term attraction.”
Ficke may be right about the halving being of short-term interest to investors. Darius Sit, partner at Singapore-based trading firm QCP Capital, is not bullish on a soaring post-halving bitcoin price.
“Regarding halving, we hold the view that impact on price might not be material,” said Sit.
Demand-side buying before the halving has been attributed to “fear of missing out,” or FOMO, as one driver in the crypto market right now. But can it last? Sit is skeptical. “Daily mined supply to 900 BTC, or just under $7 million at these levels, is a small fraction of the current daily trading volume. BTC price would be driven more by demand-side than supply-side dynamics,” he said.
That supply-side dynamic of the mining business might not look good either, as miners are going to have to make some operational decisions once the halving is complete.
Many mining machines will become worthless for bitcoin mining because they won’t be profitable after the reward drops from 12.5 to 6.25 BTC, said Zach Resnick, partner at crypto investment firm Unbounded Capital. “Bitcoin miner revenue will go down by close to 50% once the block subsidy is cut in half, which means for all but the most professionalized miners BTC mining will become unprofitable overnight absent a significant run-up in the price.”
Cryptocurrency winners include neo (NEO) in the green by 7.2%, monero (XMR) up 7% and dogecoin (DOGE) out of the doghouse, up 5.6%. The lone loser is lisk (LSK) in the red 1.5%. All price changes were as of 20:00 UTC (4:00 p.m. EDT) Thursday.
After remarkable turmoil in the oil market since April, crude is trading sideways, and is down 3.5% in trading Thursday.
Gold is making some gains in trading today, up 2% and closed the New York trading session at $1,716.
In the United States, the S&P 500 index of large-cap stocks was up 1%. U.S. Treasury bonds all slipped Thursday. Yields, which move in the opposite direction as price, fell most on the two-year bond, down a whopping 25%.
Europe’s FTSE Eurotop 100 index of the continent’s largest publicly traded companies closed up less than a percent. In Asia, the Nikkei 225 index in Tokyo opened trading for the first time this week after a holiday had the markets closed and was up less than a percent with gains in transportation and real estate.
Equities performing either flat or up this week belies the looming danger of an increasingly uncertain global economy, according to Chris Beauchamp, chief market analyst at investment platform IG. “Warnings of terrible economic performance this year have been followed by predictions of a moderate rebound for next year. But as companies around the globe are discovering, it is almost futile to predict what the next few quarters will look like,” Beauchamp said.
Author: Bradley Keoun