Paul Tudor Jones bets on Bitcoin amid unavoidable inflation scenarios

Legendary investor Paul Tudor Jones recently warned that the United States faces an intractable fiscal dilemma: the only viable path is inflation. In an interview with CNBC, the billionaire fund manager expressed his conviction that “all roads lead to inflation” and revealed that he maintains bullish positions in Bitcoin, gold, and commodities as a hedge against this scenario.

The debt trap: when growth isn’t enough

The U.S. fiscal situation has reached critical levels. National debt has grown exponentially: just 25 years ago, it represented 40% of GDP, and today it approaches 100%. According to Paul Tudor Jones, this trajectory is clearly unsustainable, regardless of who wins the upcoming presidential elections.

Both Harris’s and Trump’s campaign promises—based on higher spending and lower taxes—will only worsen the problem. “We will be bankrupt very quickly unless we take seriously the need to address our spending issues,” warned the investor. This concern is not unique to him: Federal Reserve Chairman Jerome Powell has issued similar warnings, and legendary investor Stanley Druckenmiller recently positioned himself against U.S. government bonds.

Paul Tudor Jones’s strategy: “Zero fixed income”

In light of this outlook, Paul Tudor Jones proposes a clear positioning strategy: a diversified portfolio of gold, Bitcoin, commodities, and tech stocks (Nasdaq), combined with a complete absence of bonds and fixed income.

This recommendation is based on the premise that the Federal Reserve will keep nominal interest rates below the real inflation rate, allowing for nominal economic growth that outpaces inflation. In other words, the only way out of such debt is to “inflate away” the liabilities, which erodes the value of the debt and favors real assets like Bitcoin and commodities.

Market reacts: Bitcoin surpasses $68,000 on technical rebound

In the short term, Bitcoin has responded to these macroeconomic dynamics. The cryptocurrency recently surged to levels near $68.18K in what experts describe as a short squeeze. This movement also pulled altcoins like Ethereum (ETH), Solana (SOL), Dogecoin (DOGE), and Cardano (ADA), as well as sector-related stocks like Coinbase.

However, Joel Kruger of LMAX Group warns to be cautious: this rebound appears mainly as a technical move driven by short liquidation and reduced liquidity, rather than solid fundamental catalysts. Joshua Lim of FalconX notes that some funds are already rotating into volatile altcoins via options, chasing the rally.

For Bitcoin to confirm a more robust bullish trend, it will need to break and hold key resistance levels around $72,000 and $78,000. Until then, the rebound will remain more tactical than strategic, though aligned with the broader macroeconomic view championed by Paul Tudor Jones.