Market News & Analysis

Top Story

PTJ Buying Bitcoin

Paul Tutor Jones wants to buy Bitcoin, which Is up 25% in the last 2 weeks and closing in on 10,000!  The macro hedge fund manager, who has been trading in the 1970s, said in a letter to clients that he is buying Bitcoin as a hedge against inflation.  Central Banks have been printing money non-stop since the breakout of the coronavirus, and at some point, they are going to have to pull in the reins.  When money starts to tighten and interest rates rise (at some point), the expected result is inflation.  Jones is betting that Bitcoin, along with gold, will act as a hedge against his expected inflation.  The bet on Bitcoin is an interesting one, as the cryptocurrency has been trading in the same direction as stocks since the lows in March.

Bitcoin was already going bid into the “halving” that is expected next week since it bottomed along with stocks in mid-March.  The news of PTJ’s purchase of Bitcoin added to the surge as it heads into resistance near 10,000.  The psychological level confluences with the downward sloping trendline of the long-term triangle dating back to the highs of 2017, recent previous highs,  horizontal resistance, and the 61.8% Fibonacci retracement level form the June 2019 highs to the March lows.  In addition, one has to consider that with the “halving” approaching, could this be a “buy the rumor, sell the fact” trade?  First level of support is near 9500 (on the daily chart, not shown)

Source: Tradingview, City Index

Bitcoin wasn’t the only “inflation hedge” to go bid on the back of the PTJ news. Gold is also considered a hedge against inflation.  Because Paul Tutor Jones thinks inflation is headed our way, gold was also bought, rising over 30 dollars today.  The precious metal has been consolidating in a triangle formation since early April, and with today’s move, appears to possibly be ready for a breakout to the upside.  Gold hit resistance near the day’s highs at the downward sloping trendline of the triangle near 1723.  Above that, gold could retest the April 14th highs at 1748.  1795 provides resistance in the form of prior highs from 2011/2012, and final resistance is the all-time highs at 1920.  Support is near the day’s lows of 1681.5, which is also the upward sloping trendline of the triangle.

Source: Tradingview, City Index

Paul Tutor Jones is a big name in the hedge fund world.  So, when he speaks, people listen.  Traders and investors will be looking for inflation hedges at some point in the future.  PTJ seems to think the future is Bitcoin and the future is already here!


This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit for the complete Risk Disclosure Statement.

Important Notice:

Cryptocurrencies are not legal tender currency and trading of derivatives on Cryptocurrencies are currently not covered under any regulatory regime in Singapore. Consequently, investors should be aware they do not have protection under the Securities and Futures Act (Cap. 289). Please ensure that you are fully aware of the risks.