The most recent statement from billionaire and philanthropist Paul Tudor Jones about holding Bitcoin despite the massive correction caused a dispute in the crypto community, and Peter Schiff has joined it recently.
"Jones already took profits"
Schiff believes that Jones took profits on BTC a long time ago since it is not a very compelling endorsement from the first big mainstream investors. Schiff is most likely hinting at the poor performance of the digital gold on the market: Bitcoin has lost more than 70% of its value since reaching the all-time high back in November.
Paul Tudor Jones just admitted to still holding a minor allocation to #Bitcoin. Not a very compelling endorsement from the first big main-stream investor to take a position. My guess is Jones already took profits on his initial purchase and is now gambling with the house's money.— Peter Schiff (@PeterSchiff) October 10, 2022
The endorsement from relatively large mainstream investors might push some retail and inexperienced investors into the industry that is not going through its best time, which will most likely cause a lot of losses for those who do not know how to do proper risk management.
The version about taking profits can also be close to the truth considering the behavior of institutional investors on the crypto market's way down. Most fund management companies exited most of their positions on the digital assets market. According to institutional inflows, funds, trusts and other companies are not yet convinced to return to the market and mostly provide inflows to short derivatives.
Billionaire prefers gold
According to Schiff, the billionaire does not hold a noteworthy amount of BTC, and it might even be a mistake in his AUM calculation. However, Jones has significant exposure to real gold.
Recently, the precious metal saw a 6% price increase in contrast to Bitcoin's stalemate. Unfortunately, bears pushed gold below the 50-day moving average and it continued its way down.