Wall Street Big Whale Enters! Paul Jones: If I had to pick one strategy to maximize profits, I would choose Bitcoin

The legendary trader, Wall Street hedge fund manager, and founder of investment firm Tudor Investment Corporation, Paul Tudor Jones, recently stated in a letter to investors that he is buying Bitcoin. He believes that Bitcoin will serve as a hedge asset against severe inflation due to the unlimited quantitative easing (QE) policies.

Who is Paul Tudor Jones?

As an early hedge fund manager, Jones founded the investment firm Tudor Investment at the young age of 25. He gained immense reputation by performing exceptionally well during the 1987 and 2008 financial crises, achieving returns of over 99% for five consecutive years and maintaining a record of no losses for 28 years.

In addition, JACK D. SCHWAGER, the author of best-selling books "Market Wizards" and "Technical Analysis," interviewed Jones in his book "The New Market Wizards." In the Forbes Billionaires List this year, Jones ranked 320th with a net worth of $5.1 billion.

In his letter to investors in May, Jones stated that Bitcoin is a hedge against "severe inflation" and remarked:

Bitcoin reminds me of gold in the 1970s, when I was just starting out in the trading markets. Back then, gold futures gradually matured, much like Bitcoin today. In the early 1970s, gold experienced a sharp rebound, soaring from $35 in 1971 to $180 by the end of 1974.

Similarities Between Gold and Bitcoin

Jones compared the price movements of gold after 1973 with Bitcoin after 2016. Gold tripled in price since 1973, then dropped 50% after 1975, resembling Bitcoin's correction after 2018.

Jones noted that, based on gold's historical trend, this would be a good buying opportunity, as gold broke previous highs after a correction and increased fourfold. The red line in the chart below is likely the trajectory that Bitcoin is about to replicate today.

At the end of his message, Jones emphasized:

Ultimately, the best strategy to maximize profits is to have the fastest horse. If I had to make a prediction, I would say that horse is Bitcoin. With countries around the world borrowing massively, in this world eager for new, secure assets, the role of Bitcoin may become increasingly significant.

Bitcoin broke the $10,000 mark today and is hovering around that level. The entry of this financial giant undoubtedly injects confidence into the crypto market. However, Jones' firm, Tudor Investment, holds Bitcoin futures positions rather than spot holdings. Nevertheless, the involvement of this legendary trader in Bitcoin has once again sent the entire market and crypto community into a frenzy.