Billionaire Paul Tudor Jones Warns Bitcoin Tech Stocks Could Crash After Massive Rally

Bitcoin has experienced a remarkable surge in 2025, with its price surpassing $126,000, driven by increased interest in hard assets amid expectations of Federal Reserve interest rate cuts. Billionaire investor Paul Tudor Jones predicts a major rally in Bitcoin and tech stocks, reminiscent of the 1999 dot-com bubble, but warns that investors should be prepared for a sharp crash following the speculative frenzy. Market strategies such as call spreads are being adopted by traders to capitalize on Bitcoin's bullish trend while managing risks of potential sudden corrections. There is also discussion around the possibility of the United States creating a Strategic Bitcoin Reserve, which could innovate monetary policy but might destabilize the market if mismanaged, as past government interventions in Bitcoin holdings have caused market uncertainty. Meanwhile, the U.S. government shutdown has impeded regulatory progress in the cryptocurrency sector, with agencies like the SEC halting work on crypto policy changes and exchange-traded fund approvals, shifting regulatory influence to other institutions unaffected by the shutdown. These developments collectively highlight both the growing institutional interest and the regulatory and market risks facing Bitcoin and the broader crypto industry.