Paul Tudor, a billionaire investor and “trading wizard,” says he is considering adding Bitcoin (BTC) to his portfolio. This pivot comes amid concerns about the US government’s debt and deficit problems.

The statement comes as the countdown to the US election continues, with either Donald Trump or Kamala Harris set to become the 47^th President of the United States.

Paul Tudor Jones Warns of US Inflation, Eyes Bitcoin as Hedge

The veteran Wall Street investor says the US government’s debt and deficit problems will not go away regardless of who wins the November elections. In his opinion, “all roads lead to inflation,” even after the elections.

These remarks came during a Tuesday interview with CNBC. Tudor said his portfolio could include Bitcoin, commodities, and tech stocks. However, he “rejected” bonds.

In a recent announcement, the Federal Reserve Bank of New York indicated that the average inflation expectation of US consumers in the next 12 months is about 3%. This contravenes the Federal Reserve’s (Fed) preferred inflation target of 2% per year.

According to Tudor, rising US government spending and upcoming tax cuts make the Fed’s inflation target out of reach. Based on this, he cautions that the US is on a path to a deficit unless it works on its spending. He indicated that the national debt has increased to 100% of Gross Domestic Product (GDP), signifying a 60% increase in 25 years.

Read more: How to Protect Yourself From Inflation Using Cryptocurrency.

Against this backdrop, the billionaire investor says the next US president will have to face this problem. Nevertheless, the promises both Donald Trump and Kamala Harris are already making ahead of the elections are bound to worsen the situation. Notably, the commitments revolve around spending increases and tax cuts.

Jones’ remarks align with the US Congressional Budget Office (CBO) estimate that the federal deficit in fiscal year 2024 would hit $1.9 trillion. According to the billionaire investor, this is avoidable through inflation and economic growth. He, therefore, recommends an expansionary policy by the government to keep nominal interest rates below inflation.

Noteworthy, Paul Tudor started shilling Bitcoin four years ago and held around 2% of his assets in BTC in 2020. His longstanding impression of the pioneer crypto is that it is a good portfolio diversifier.

Massive Capital Inflows into Bitcoin ETFs Before US Elections

According to JPMorgan analysts, demand for Bitcoin and, therefore, its momentum could increase. This is in the context of economic instability worsened by geopolitical tension. Bitcoin presents as a hedge, and the same is already happening with gold.

Similarly, massive capital inflows into Bitcoin ETFs (exchange-traded funds) in September and October follow outflows in August. This suggests retail and institutional investors already perceive Bitcoin as a hedge.

As BeInCrypto reported, citing CoinShares researchers, the US elections now pass as the leading tailwinds shifting focus away from the economy. The election narrative continues to drive crypto inflows. With the US elections approaching on November 5, the narrative around crypto as a political topic could gain further momentum.

This growing interest is expected to significantly benefit digital asset investment products as crypto becomes a focal point in an increasingly expansive voter landscape. The political spotlight on crypto, coupled with market factors, positions digital assets for potential growth. It comes amidst heightened investor engagement leading into November.

According to Polymarket data, Donald Trump continues to widen the lead range against Kamala Harris. He boasts a 63.7% winning odds lead against Kamala Harris’ 36.2%.

CryptoQuant analyst Burak Kesmeci’s recent report revealed a significant notable rise in Bitcoin accumulation addresses, which now surpasses 2.9 million BTC.

These addresses have steadily increased their holdings without selling despite the market’s uncertainty, doubling their Bitcoin reserves in just 10 months.

This trend highlights a broader market sentiment, where long-term investors, both individual and institutional, are displaying confidence in Bitcoin’s future.

The Rise Of Bitcoin Accumulation In 2024

In the post uploaded on the CryptoQuant QuickTake platform, Kesmeci’s analysis dives deep into understanding what defines these accumulation addresses and why they have been so active throughout 2024.

Unlike typical investor behavior, the analyst mentioned that these addresses have never had a Bitcoin outflow, meaning they’ve only been accumulating. The analyst calls them the epitome of long-term investment strategies, suggesting they are fully committed to the “HODL” mentality. Kesmeci wrote:

They are not exchange addresses; they belong entirely to individual or institutional investors. They’ve made at least two transfers and have been active at least once in the last seven years. Essentially, these addresses are the living embodiment of the word “hodl.”

As of January 2024, these accumulation addresses held 1.5 million BTC. However, in just 10 months, that figure nearly doubled, reaching 2.9 million BTC.

Kesmeci points out that this accumulation behavior isn’t new, but what makes 2024 unique is the speed and volume at which these addresses are growing.

According to the report, this consistent accumulation in such high quantities implies that short-term market volatility does not influence these holders. Kesmeci also highlights that back in 2018, accumulation addresses only held 100,000 BTC.

By the 2021 bull run, that number had grown to 700,000, and in 2024, the acceleration has been noteworthy. This rapid accumulation suggests these addresses are deeply confident in Bitcoin’s long-term value and potential. Kesmeci asks, “What do these address owners know that the rest of the market might not?”

What Does This Mean for The Market?

The analyst concluded with a bold prediction: by the end of 2024, these addresses could hold more than 3 million BTC, potentially valuing over $210 billion at a Bitcoin price of $70,000.

Notably, according to the CryptoQuant analyst, this would place the total value held in these addresses above major corporations like “General Electric the 61st largest company by market cap,” highlighting long-term Bitcoin holders’ growing influence and strength.

Kesmeci emphasizes that this kind of accumulation could significantly impact Bitcoin’s price stability and future growth. If the trend continues, the market may see reduced selling pressure as these large holders remain committed to their positions, possibly driving a sustained price rally in the long term.

Featured image created with DALL-E, Chart from TradingView

Crypto investment inflows surged to $2.2 billion last week, the highest since July 2023. Experts ascribe this growth to mounting optimism over a potential Republican win in the upcoming US elections.

This shift in political expectations has boosted both investor confidence and market prices.

Crypto Inflows at Multi-Month Highs Amid US Election Buzz

After recording $407 million in positive flows for the week ending October 11, digital asset investment inflows reached 2.2 billion last week. This represents a five times growth week-over-week, with Bitcoin seeing the largest inflows at $2.13 billion.

Positive flows into Ethereum reached $57.5 million. Meanwhile, multi-asset inflows interrupted their 17 consecutive week inflow streak to record $5.3 million in outflows.

Like the week before, CoinShares analysts ascribe the growing interest to the upcoming US elections, given that the US led the charge with inflows totaling $2.3 billion.

“We believe this renewed optimism stems from growing expectations of a Republican victory in the upcoming US elections, as they are generally viewed as more supportive of digital assets. This, in turn, has led to positive price momentum,” a paragraph in the report read.

Read more: How Can Blockchain Be Used for Voting in 2024?

According to CoinShares researchers, this highlights a growing interest in crypto investments within the country. It comes as the US election countdown continues, with only 15 days left. According to Polymarket, pro-crypto candidate Donald Trump is in the lead with a 22.9 percentage point difference against Kamala Harris.

With the Republican candidate generally perceived as being supportive of the cryptocurrency sector, the general sentiment is a potential Donald Trump victory could lead to more crypto-friendly regulations.

As BeInCrypto reported, the Republican presidential aspirant has plans to overhaul US crypto rules beyond Gary Gensler. This would fuel market growth further amidst beliefs that the party may introduce policies beneficial to the cryptocurrency industry.

As the countdown continues, investor interest in crypto is also growing. The report indicated a 30% increase in trading volumes in digital asset investment products last week. The uptick in trading activity, combined with rising asset prices, has brought total assets under management (AUM) in the digital asset space to nearly $100 billion.

If the current momentum continues, the market could soon cross this milestone. Crypto investment inflows could also increase this week compared to last week.

“A positive regulatory environment could open the floodgates for institutional investment. If the US sees a leadership shift that’s supportive of crypto innovation, it could lead to clear guidelines for crypto businesses, a potential green light for ETFs, and institutional confidence, leading to a wave of new capital into crypto markets,” an analyst wrote on X (formerly Twitter).

Read more: How To Buy Bitcoin (BTC) and Everything You Need To Know

Meanwhile, BeInCrypto data shows Bitcoin is eying the $70,000 psychological level, trading for $68,210 as of this writing.