JPMorgan analysts have suggested that a Trump presidency could benefit Bitcoin and gold, driven by a strategy they refer to as the “debasement trade.” This approach often involves investing in assets like gold and Bitcoin, which are seen as safe stores of value when inflationary policies are likely to weaken a currency.
Led by managing director Nikolaos Panigirtzoglou, the report explains how ongoing tariffs and geopolitical issues could strengthen the case for this trade. Despite an initial dip in gold’s value following Trump’s election, Bitcoin soared to an all-time high of $76,244 on November 6, now trading near $75,100.
The analysts foresee continued price growth for both assets, particularly as central banks reassess their reserve allocations. They noted that central bank gold purchases spiked after rising tensions in Eastern Europe. While China’s central bank paused its gold acquisitions in April, analysts expect that global geopolitical strains will push countries to diversify reserves away from the dollar and into gold.
The report also highlights MicroStrategy’s ambitious Bitcoin acquisition plan, which could impact the market. The company aims to raise $42 billion over three years, split equally between equity and fixed-income securities, with a $10 billion investment in Bitcoin planned for 2025—nearly matching its cumulative purchases since mid-2020.
Disclaimer: This content does not constitute trading or investment recommendations. It’s essential to conduct your own research before purchasing any cryptocurrency or investing in any services.
