Inflation risks are expected to rise significantly after the US presidential elections, making Bitcoin a critical component of an investment portfolio. This was stated by trader and Tudor Investment founder Paul Tudor Jones, as reported by Cointelegraph.

“I have gold, Bitcoin, commodities, and NASDAQ stocks in my portfolio. I’ve completely moved out of bonds,” Jones explained.

Inflation and Economic Policy Concerns

Jones highlighted that increasing US government spending and potential tax cuts make it unlikely for inflation to return to the target 2% without significant policy changes.

“We’ll quickly find ourselves in a difficult situation if we don’t start addressing government spending issues,” Jones warned.

According to the Congressional Budget Office (CBO), the US federal budget deficit is projected to reach $1.9 trillion in 2024 and could grow to $2.8 trillion by 2034.

“The only way out of such a situation is issuance,” Jones added, referencing Japan’s similar monetary strategy.

Bitcoin as a Hedge

Analysts at JPMorgan suggest that a possible victory by Donald Trump in the US presidential election could exacerbate economic turbulence through higher tariffs and increased government spending, further devaluing the national debt. In this scenario, Bitcoin would act as a hedge against economic instability.

Notably, BlackRock CEO Larry Fink has also expressed confidence in the rising value of Bitcoin.