As U.S. Fiscal Pressures Grow, Paul Tudor Jones Urges Bitcoin Allocation in All Portfolios

“Debt Trap Reality Makes Bitcoin a Must-Have, Says Paul Tudor Jones”

Billionaire macro investor Paul Tudor Jones believes the U.S. economy is heading toward a dangerous fiscal spiral — and bitcoin should be part of every investor’s toolkit.

In a Bloomberg interview on Wednesday, Jones said the U.S. is “firmly in a debt trap,” with little political will to rein in spending. As a result, he expects real interest rates to stay negative, debasing the dollar and fueling demand for hard assets.

“In that kind of environment, your safest portfolio is one that includes vol-adjusted exposure to bitcoin, gold, and equities,” he said. “Bitcoin, despite its volatility, has proven to be an effective hedge when policymakers let inflation run.”

Jones also speculated that President Trump may nominate a significantly dovish Federal Reserve chair after Jerome Powell’s term ends next year, which could cement the era of easy money and lift asset prices.

The famed investor didn’t provide an exact allocation to bitcoin, as he had in the past (1–2%), but reiterated his conviction in BTC’s role as an inflation hedge — particularly as May’s CPI showed a 2.4% YoY increase, slightly under expectations.