The cryptocurrency’s price surged past $40,000, a figure it last touched on May 18.
By Monday, the cryptocurrency had registered a 17% increase in its price to cross $40,000.
The first one was Tesla CEO Elon Musk’s tweet saying that, due to the energy consumption and the accompanying environmental damage of Bitcoin, he would no longer allow Teslas to be purchased with the cryptocurrency.
Jones, who has invested 2% of his net assets in Bitcoin, said he considered the cryptocurrency to be a “great diversifier.” “Everybody asks me what should I do with my Bitcoin.
Tudor Jones is among an increasing number of institutional investors and hedge fund owners pivoting away from traditional financial instruments towards Bitcoin.
Their positive assessments of Bitcoin have been complemented with a widening array of crypto offerings by investment firms. For example, State Street recently launched a new division that will offer services related to decentralized finance and the digital economy.
While these developments bring much needed liquidity to its ecosystem, the cryptocurrency still remains a combustible asset prone to enormous price swings in short periods of time.
Bitcoin’s underlying problems — from high energy use for Bitcoin mining to a trading ecosystem dominated by a few large players like Tesla — also persist.
In the United States, chair of the Securities and Exchange Commission Gary Gensler recently cautioned investors against Bitcoin markets.