Paul Tudor Jones says US inflation could drive Bitcoin investment.

Paul Tudor, billionaire investor and “marketing wizard” has said that he is considering adding Bitcoin (BTC) to his portfolio. This pivot comes at a time when the US government's debt and deficit problems are pressing.

The announcement was made as the United States election countdown continues and both Donald Trump and Kamala Harris will become the 47th President of the United States.

Paul Tudor Jones warns of US inflation, eyes Bitcoin as a hedge

The veteran Wall Street investor says the U.S. government's debt and deficit problems won't go away without saying who will win the November election. In his opinion, “all roads lead to inflation” even after the election.

These comments came in an interview with CNBC on Tuesday. Tudor said his portfolio could include Bitcoin, commodities and technology stocks. However, he “didn't accept” the bonds.

The Federal Reserve Bank of New York said in a recent statement that US consumer inflation will average about 3 percent over the next 12 months. This is against the Federal Reserve's (Fed) preferred inflation target of 2 percent per year.

According to Tudor, rising US government spending and upcoming tax cuts will keep the Fed's inflation target out of reach. From there, he warns, the US is on a path to deficit unless it controls its spending. He pointed out that the national debt has risen to 100% of the Gross Domestic Product (GDP), a growth of 60% in 25 years.

Read more: How to protect yourself from inflation using cryptocurrency.

Against this backdrop, the billionaire tycoon says the next US president will have to face this problem. However, the pre-election promises of Donald Trump and Kamala Harris are bound to worsen the situation. In particular, the promises focused on spending increases and tax cuts.

Jones' comments are in line with the US Congressional Budget Office (CBO) forecast that the federal deficit will reach $1.9 trillion in fiscal year 2024. According to the billionaire investor, this can be avoided through inflation and economic growth. Thus, it recommends an expansionary policy on the part of the government to keep the nominal interest rate below inflation.

Interestingly, Paul Tudor started Bitcoin shilling four years ago and by 2020 he holds around 2% of his assets in BTC. The long-term perception on the pioneer crypto is that it is a good portfolio diversifier.

Huge capital has flowed into Bitcoin ETFs ahead of the US election.

According to JPMorgan analysts, the demand for Bitcoin and, therefore, the speed may increase. This is in the context of economic instability exacerbated by geopolitical tensions. Bitcoin offers a hedge, and the same is already happening with gold.

Similarly, high capital flow Follow the outflows into Bitcoin ETFs (exchange-traded funds) in September and October. In August. This suggests that retail and institutional investors already perceive Bitcoin as a hedge.

BeinCrypto reports, citing CoinShares researchers, that the US elections are now over as the leaders turn their attention away from the economy. The election narrative continues to drive crypto inflows. As the US elections are approaching on November 5, the narrative around crypto may gain more strength as a political topic.

As crypto is a focal point in an ever-expanding spectrum of voters, this growing interest is expected to benefit digital asset investment products significantly. The political focus on crypto, combined with market conditions, positions digital assets for growth. It comes amid heavy investor participation heading into November.

According to Polymarket, Donald Trump continues to widen his lead over Kamala Harris. He has a 63.7% chance of winning, compared to Kamala Harris' 36.2%.