JPMorgan: Bitcoin to Benefit from Trump Presidency and MicroStrategy's Plans

Gold and Bitcoin are both expected to do well as Donald Trump wins the U.S. presidential election, according to analysts at JPMorgan Chase, who highlighted the concept of the “devaluation trade,” The Block reports. A “devaluation trade” refers to an investment strategy that benefits from a depreciating or weakening currency, usually due to inflation or expansionary fiscal policy. In this type of trading, investors buy assets such as gold and bitcoin, which are seen as stores of value that maintain their value even as the purchasing power of the currency declines.
Retail investors are also backing gold and bitcoin, with investments in gold and bitcoin ETFs increasing since last summer, a trend that is set to continue through 2025, and Trump's policies are likely to support both assets as well, JPMorgan analysts noted. Additionally, analysts referenced an aggressive bitcoin acquisition plan announced by MicroStrategy through its “21/21 program,” saying bitcoin is expected to get a further boost. The plan involves raising $42 billion over the next three years, with half ($21 billion) coming from equity and the other half ($21 billion) from fixed-income securities. In 2025 alone, MicroStrategy will invest $10 billion in bitcoin purchases, which is roughly equivalent to the total amount it has accumulated since mid-2020, analysts said.