Paul Tudor Jones said bitcoin is the strongest hedge against inflation, citing its fixed supply as a key advantage over traditional assets like gold.
He argued that unlike gold, bitcoin’s capped supply makes it structurally scarce, especially during periods of heavy monetary and fiscal stimulus that tend to drive inflation.
“Bitcoin is unequivocally the best inflation hedge that there is — more than gold,”
Jones said.
Jones contrasted his bullish view on bitcoin with a cautious outlook on equities, warning that current S&P 500 valuations suggest negative returns over the next decade.
He pointed to the ratio of U.S. stock market capitalisation to GDP, which remains near levels seen during the dot-com bubble, as evidence of stretched valuations.
Jones also warned that a major market correction could hit government revenues and destabilise bond markets due to reduced capital gains taxes and broader economic effects.
He added that increased equity supply from upcoming IPOs and reduced share buybacks could further pressure stock prices, making it harder for investors to generate returns.
At the time of reporting, Bitcoin price was $76,571.28.