According to CryptoPotato, billionaire investor Paul Tudor Jones has expressed concerns about investing in risk assets due to escalating geopolitical tensions and the United States' dire financial situation. The founder and chief investment officer of Tudor Investment stated that the US is in its weakest fiscal position since World War II, with a debt-to-GDP ratio of 122%. He cited the Israel-Hamas war as contributing to a challenging geopolitical environment and a potential risk-off market environment. Despite his reservations about stocks, Jones expressed his preference for Bitcoin and gold as safe-haven assets.
Jones attributed America's financial woes to surging interest rates and mounting debts. With interest rates at 5.5% and the national debt at a record $33.5 trillion, he warned of a vicious circle where higher interest rates lead to higher funding costs, increased debt issuance, further bond liquidation, and even higher rates. Jones has been a Bitcoin bull for the past three years, revealing in 2020 that he had allocated 1-2% of his assets in BTC and increasing that allocation to 5% in 2021. Despite the bear market in May 2023, he maintained his affinity for the asset, citing its limited supply as a key factor.
However, Bitcoin's price has dropped 2% to $27,151 following Jones' endorsement. The cryptocurrency failed to break resistance at $28,000 over the weekend and has retreated to its lowest level since October 1. Analysts have noted market fluctuations but confirmed that the longer-term trend since the cycle low last November remains upward.
