JPMorgan anticipates Bitcoin and gold rise with Trump victory
According to JPMorgan analysts led by Nikolaos Panigirtzoglou, a potential victory by Donald Trump in the upcoming U.S. presidential election could drive increased retail interest in Bitcoin (CRYPTO:BTC) and gold.
The analysts' report, released Wednesday, points to a notable rise in retail purchases of Bitcoin and gold exchange-traded funds (ETFs), particularly as concerns over currency debasement gain traction.
“Retail investors appear to be embracing the ‘debasement trade’ in an even stronger manner by buying bitcoin and gold ETFs,” stated the analysts.
In October alone, Bitcoin ETF inflows reached $4.4 billion, with $1.3 billion added in just two days.
This surge marks the third-largest monthly inflow since January, underscoring the growing retail demand for these assets.
Alongside Bitcoin and gold, analysts observed heightened interest in “meme and AI tokens,” which have outperformed in terms of market capitalisation.
However, while retail investors actively buy Bitcoin ETFs, institutional investors are more reserved.
The report noted, “Bitcoin BTC futures have become rather overbought, creating some vulnerability going forward,” suggesting that institutional demand for Bitcoin futures may be stabilising.
A similar trend is evident in gold, where retail investors maintain strong ETF activity, but institutional interest in gold futures appears to be slowing.
JPMorgan’s analysis reflects broader optimism that ongoing macroeconomic uncertainties and inflation concerns could fuel growth in cryptocurrencies throughout 2024.
They added, “To the extent a Trump win inspires retail investors to not only buy risk assets but to also further embrace the ‘debasement trade,’ there could be additional upside for bitcoin and gold prices in a Trump win scenario.”
Despite the bank’s interest in blockchain initiatives and crypto-related products, CEO Jamie Dimon maintains a cautious stance on Bitcoin, arguing that it “doesn’t have value” and supporting stricter regulation if he held a government position.
At the time of reporting, the Bitcoin price was $69,709.21.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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