Oct 11, 2023

Hedge fund giant Paul Tudor Jones told CNBC that geopolitical risk and rising U.S. government debt levels make it difficult to own stocks, but bitcoin and gold are attractive options.

Video transcript

The chart of the day is brought to you by crypto dot com. The world's fastest growing crypto app, another sort of large name in the Trad fire world yesterday came out hedge fund giant Paul Tudor Jones. He told C NBC uh a somewhat different take on this whole crisis that this geopolitical risk, you know, the rising u of government debt levels, everything that's sort of uh connected with all this uncertainty and angst is in fact a positive factor for, for gold and for Bitcoin. Um you know, I I, is that, is that a position that you think, how does that idea emerge if it does? And, and uh is it supportive uh in, in the long run for? I very strongly agree with him in the long run, I think, look, I often make the point that Bitcoin trades like an option on its own adoption that if Bitcoin becomes digital gold, the numbers say it needs to be 20 times the current price. And if the Bitcoin becomes a standard means of, of store of value globally, it will go beyond that. And that's the base case for the long term B of Bitcoin but right now, it's still fueled on the upside and sometimes on the downside by speculative action, which really makes it more like an option of whether or not it will be, it will able to grow into that sort of valuation. So Bitcoin tends to march to the beat of its own drummer, its correlation, the gold is much less than one might expect. In fact, today gold is up and Bitcoin is down, which is kind of, you know, proof of that. But the truth is is that in the long run, I think he's right. I think that Bitcoin in a digital world has that potential. And the on chain metrics which you, you guys follow, you know, that mining hash rates are at an all time high. That holing ie people who haven't sold is at an all time high. And so the marginal buyers or sellers are speculators and that's why we're seeing this market kind of as, you know, you call it a bear market. It's not really a bear market, it's just really a a range bound market in Bitcoin with ever slightly ever higher ranges is what we've seen. Uh and we've seen this, you know, a lot over the last six months. And so the fact that the market reaction writ large to this crisis is muted is as surprising to me as anything else. I mean, you know, you listen to Paul Tudor Joe, then you look at treasury yields and you see that it's, they barely move. They're actually up a little bit today on the long end and, and that's hard for me to fathom. But the truth is, is, I think people are trying to digest what the possibilities are and you know what the chances for escalation, et cetera are in this particular war.

Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to coindesk.consensus.com to register and buy your pass now.