Billionaire investor Paul Tudor Jones is worried about the state of the U.S. economy and its mounting debt. His investing solution to hedge against inflation includes buying commodities such as Bitcoin. US national debt currently stands at $37 trillion and counting.

Jones argued that the U.S. is stuck in a “debt trap” and that policymakers will likely keep real interest rates below inflation to reduce the burden, the veteran investor told Bloomberg TV on June 11.

President Trump will likely tap an “uber-dovish” Fed chairman to replace Jerome Powell, whose tenure at the central bank is set to end in 2026. That means higher prices, lower purchasing power, and bigger risk for traditional portfolios, Jones, who founded hedge fund Tudor Investment Corporation, noted. In other words, the only way a nation gets out of such high debt is to inflate its way out of it.

To hedge against that ugly scenario, Tudor Jones thinks every portfolio should consist of Bitcoin, gold, and stocks.

“It would be some combination of vol-adjusted bitcoin, gold, and stocks,” Jones opined, highlighting that BTC’s price swings are much more wild than those of gold, so the sizes of the positions should vary. Still, he astutely clarified: “That’s probably your best portfolio to fight inflation.”

Notably, Bitcoiners have long touted the flagship cryptocurrency as a hedge against inflation, just like the yellow metal. Jones has oftentimes stated in the past that he likes Bitcoin and that the asset can be held by investors in times of economic uncertainty. 

Though he previously suggested allocating 5% to BTC, he refused to give a figure during the recent Bloomberg interview  — though he doubled down on his strong belief in the crypto.

The legendary investor’s comments come after the Consumer Price Index accelerated to a year-on-year pace of 2.4% in May, indicating that U.S. President Donald Trump’s trade war has had a limited impact on the economy.

At around $109,536, the price of BTC is up more than 64% in the year to-date, according to crypto data provider CoinMarketCap. Analysts are eyeing price targets for BTC past its current all-time high of $111,814.

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Filed under: Bitcoin - @ June 11, 2025 7:08 pm