Paul Tudor Jones Praises Bitcoin As Currency Breaches $13,000 For The First Time In Over A Year

Bitcoin has surpassed the $13,000 level following the announcement that payments giant PayPal will soon allow customers to buy, sell and store cryptocurrencies using their accounts. 

A day after the announcement on October 21 Bitcoin's price is still trending upwards at $13,093 and the currency is up 3.10%. While still on the rise, the currency has come down from its 2020 high of $13,232 hit earlier today. The currency's 24-hour range is between $12,685 and $13,232. 

Additionally, the aggregate open interest on Bitcoin, meaning the total number of outstanding positions, has hit an all-time-high at $2.48 billion, according to data from The Block. The high futures investment could be an indicator of trade strength and interest in Bitcoin. The cryptocurrency likely also got a boost after hedge fund manager Paul Tudor Jones endorsed Bitcoin on CNBC's Squawk Box on Thursday. 

"Bitcoin has an enormous contingent of smart, sophisticated people who believe in it," Jones said. "so I've never had an inflation hedge where you have a kicker, but you also have great intellectual capital behind it so that makes me even more constructive on it. If you think about it, if you're long you're effectively short the buy market, that's your inflation hedge, you're really betting on the fallacy of mankind rather than its ingenuity and entrepreneurialism."

Jones cited global banks printing fiat to support stimulus programs during covid-19 as a leading motivator for purchasing Bitcoin. Bitcoin advocates grabbed hold of Tudor's positive Bitcoin statements to argue that a greater rally is on the horizon. 

However commodity strategist with Bloomberg Intelligence Mike McGlone wrote in a recent report that Bitcoin will need another catalyst to sustain itself above the $14,000 level. Regardless, McGlone predicted Bitcoin will breach resistance soon if demand and adoption metrics remain consistent. 

By Emily Mason

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