SpaceX Founder and Chief Engineer Elon Musk speaks at the 2020 Satellite Conference and Exhibition on March 9, 2020 in Washington, DC.
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Bitcoin’s price rose to over $ 40,000 on Monday after bullish comments from billionaire hedge fund manager Paul Tudor Jones.
“I like Bitcoin as a portfolio diversifier. Everyone is asking me what I should do with my Bitcoin? The only thing I know for sure, I want 5% in gold, 5% in Bitcoin, 5% in cash, 5% in raw materials, “Said Tudor Jones on Monday in the” Squawk Box “on CNBC.
The cryptocurrency began its most recent surge on Sunday after Tesla CEO Elon Musk said the electric vehicle maker could start accepting bitcoin transactions again in the future.
Bitcoin rose 12.9% to $ 40,710 in 24 hours, according to Coinbase. The cryptocurrency started trading at just $ 34,880 on Sunday. Since the beginning of the year, Bitcoin is up more than 30%, despite seeing wild swings. It hit an all-time high of $ 64,829.14 in April and hit a low of nearly $ 30,000 in May after a 30% intraday crash.
With the expected spike in inflation last year, institutional investors’ interest in Bitcoin as a store of value has risen significantly, fueling its recent bull run. Tudor Jones first announced on CNBC last spring that he holds “almost 2%” of his assets in Bitcoin. Since then, Stanley Druckermiller, Bill Miller and Ray Dalio have also become outspoken Bitcoin enthusiasts.
Institutions have contributed to this dynamic, with large custodians like BNY Mellon and State Street looking to offer crypto services to customers, and big financial institutions like BlackRock, Morgan Stanley, and Goldman Sachs figuring out how to provide their customers with secure exposure to Bitcoin. There used to be enormous career risk for investment institutions trying to add Bitcoin to their portfolio.
“To me, it’s just kind of a baseline look at how I protect my wealth over time, it’s a great diversification,” added Tudor Jones. “Again, I see Bitcoin as a story of wealth. I see crypto as a story of wealth. Others will argue that this is another ecosystem that is transactional in nature. “