Elon Musk May Boost Tesla’s Bitcoin Holdings Amid Inflation Concerns, Says XRP Advocate

XRP advocate and attorney John Deaton suggests Tesla might increase its Bitcoin holdings following the potential passage of a Republican-backed U.S. policy bill. The bill, which includes sweeping tax cuts for corporations and the wealthy, is projected to add $3.8 trillion to the national debt over the next decade, fueling concerns about worsening inflation.

Deaton, known for his previous efforts to challenge anti-crypto Senator Elizabeth Warren, called the bill a “walking billboard” for Bitcoin investment. He argues that the bill’s long-term economic impact, particularly on inflation and the weakening U.S. dollar, strengthens the case for decentralized assets like Bitcoin.

Tesla, led by billionaire Elon Musk, made headlines in early 2021 with its $1.5 billion Bitcoin purchase. According to Arkham Intelligence, Tesla currently holds approximately $1.2 billion in Bitcoin, despite trimming its position during past market corrections. Musk, who recently called the proposed bill a “disgusting abomination,” has historically shown interest in both Bitcoin and Dogecoin.

Gold advocate Peter Schiff echoed inflation concerns, warning that larger deficits will further devalue the dollar and worsen the inflation crisis. Meanwhile, libertarian Senator Rand Paul also voiced opposition to the bill in the Senate, where it faces strong resistance.

While it's uncertain whether Tesla will act on Deaton’s suggestion, rising inflationary pressures and Musk’s vocal criticism of government spending may revive his crypto bullishness. As regulatory debates and fiscal challenges continue in Washington, Bitcoin remains a prominent hedge against traditional financial instability.

With Tesla already holding a significant Bitcoin position, a renewed buying spree could signal growing institutional confidence in crypto amid mounting macroeconomic risks.