By Shelly Melancon (Switzerland)
American billionaire hedge fund manager, Paul Tudor Jones has revealed that he would like to invest at least 5% of his wealth into bitcoin as he considers it an ideal portfolio diversifier.
During an interview with CNBC today, the billionaire investor said “bitcoin is math and math has been with us for many decades now, one plus one will always two and it will remain so for many centuries to come. I like to invest in it and any other thing that is 100% certain, honest, consistent, and reliable.”
Jones Would Ban Bitcoin Due to Environmental Concerns
In response to a question about bitcoin’s current prices, Jones said, “all I know is that I want to allocate 5% of my asset each in commodities, cash, bitcoin, and gold. Allocation of the remaining 80% will depend on the outcome of the upcoming policy of the U.S. Federal Reserve meeting which will take place before this weekend.” “the outcome from that meeting will have significant ramifications.” Jones concluded.
Last year, the founder and chairman of Tudor investment corporation revealed that he has committed 2% of his assets into the leading digital currency. So, he is not a stranger to investing in bitcoin.
However, no one whether jones (with a net worth of about $8 billion) has invested more in bitcoin since that time.
Also read:During the same CNBC interview, Jones was asked his opinion regarding the effect of bitcoin mining on the environment. He was quoted as saying, “it takes less energy to mine bitcoin than gold. If it were up to me, I’d cancel bitcoin mining solely for its detrimental impact on the environment and enforce the miners to explore new ways of mining bitcoin without increasing the current supply.”
Tudor Jones’ CNBC Tweet. Source: Twitter
Bitcoin Price Volatility
Meanwhile, traditional bitcoin investors are in the news again after popular crypto analyst Loomdart revealed that there might fresh price volatility on bitcoin because major institutional investors are about to cash out. Grayscale Bitcoin Trust Corporation (GBTC) which manages over $25 billion in assets is about to end its periodic year next month.
However, this year’s closure date coincides with the period when its buy-in price currently trades at a discount to the spot price. Hence, this negative GBTC premium for this about-to-end year has been a hot debate in the crypto community. Usually, GBTC locks up investor funds for some period.
Then, they release it at specified times to allow investors to cash out as determined by when they invested. It will be fascinating to observe the effect of funds release (scheduled for the 19th of next month) by GBTC and the negative GBTC premium on the bitcoin price movement.
At least 16,500 BTC (about $630 million) will be unlocked during the July 19, 2021 funds release by GBTC. In times past, this combination of factors always increases bitcoin price volatility.
Analysts believe that if the bitcoin price can surge past $43,000 from its current price of about $41,000 then, it might likely reach $50,000 soon and that 16,500 BTC which will be released next month would be worth a lot more.
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