Paul Tudor, a billionaire investor, is thinking about adding Bitcoin (BTC) to his investment portfolio. This decision comes as concerns grow about the U.S. government's debt and deficit issues.

As the U.S. presidential election approaches, either Donald Trump or Kamala Harris will likely become the 47th President of the United States.

In a recent interview with CNBC, Tudor pointed out that the debt and deficit problems won't just disappear, no matter who wins the election. He believes that “all roads lead to inflation,” indicating that inflation will remain a challenge even after the elections.

Tudor is looking to diversify his investments. He’s considering Bitcoin, commodities, and tech stocks, but he’s not interested in bonds.

The Federal Reserve Bank of New York recently shared that U.S. consumers expect inflation to average about 3% over the next year. This is above the Federal Reserve’s target of 2% per year.

Tudor explained that rising government spending and upcoming tax cuts make it tough for the Fed to reach its inflation target. He warns that the U.S. is on a path toward a deficit unless spending is addressed. He noted that the national debt has now hit 100% of Gross Domestic Product (GDP), which marks a 60% increase over the last 25 years.

According to Tudor, the next president will have to tackle this issue head-on. He also mentioned that both Trump and Harris are making promises that could worsen the situation, focusing on increased spending and tax cuts.

His views align with predictions from the U.S. Congressional Budget Office (CBO), which estimates a federal deficit of $1.9 trillion for fiscal year 2024. Tudor believes this deficit could be managed through inflation and economic growth. He suggests the government should adopt an expansionary policy to keep nominal interest rates below inflation.

It’s worth noting that Paul Tudor has been a supporter of Bitcoin for four years. Back in 2020, he held around 2% of his assets in BTC. He sees Bitcoin as a solid way to diversify an investment portfolio.

JPMorgan analysts have indicated that demand for Bitcoin might increase, especially given the current economic instability and geopolitical tensions. Many are starting to view Bitcoin as a hedge, similar to gold.

Moreover, there have been significant capital inflows into Bitcoin ETFs (exchange-traded funds) in September and October, following a period of outflows in August. This trend suggests that both retail and institutional investors are increasingly seeing Bitcoin as a safe investment.

As reported by BeInCrypto, the upcoming U.S. elections are becoming a key factor influencing investor behavior, shifting focus away from broader economic concerns. With the elections set for November 5, the narrative around crypto is likely to gain more attention.

This growing interest in digital assets is expected to benefit investment products in the crypto space, especially as more voters become engaged. The political spotlight on crypto, combined with market dynamics, positions digital assets for potential growth.

According to Polymarket data, Donald Trump is widening his lead against Kamala Harris, with a winning probability of 63.7% compared to Harris’s 36.2%.