The post Crypto Bull Run Ahead : JPMorgan Predicts Trump Victory Could Trigger Bitcoin and Gold Rally appeared first on Coinpedia Fintech News
The U.S. presidential election is creating a storm of speculations in the crypto space, JPMorgan analysts are suggesting that a potential win for Donald Trump could bring new momentum to bitcoin and gold prices, spurred by heightened interest from retail investors.
Leading the analysis, Nikolaos Panigirtzoglou highlighted that retail investors are turning to bitcoin and gold as part of what JPMorgan calls the “debasement trade,” a trend where investors seek refuge in assets less susceptible to currency devaluation.
With Trump’s chances of victory increasing, all eyes are on gold and bitcoin.
The “Debasement Trade” Sparks Bitcoin and Gold Demand
JPMorgan analysts point to the growing interest in the “debasement trade” as investors, wary of inflation and economic shifts, are flocking to alternatives like bitcoin and gold. “Retail investors appear to be embracing the ‘debasement trade’ in an even stronger manner by buying bitcoin and gold ETFs,” JPMorgan stated in its report.
These investors are not only looking to hedge their assets but are also showing increased interest in alternative investments, including meme coins and AI tokens, which have been outperforming other digital assets in market cap.
Record-Setting Bitcoin ETF Inflows
The analysts noted substantial inflows into bitcoin ETFs, with $1.3 billion in new investments over just two days in October, bringing the monthly total to $4.4 billion. This wave of retail enthusiasm ranks as the third-highest month for bitcoin ETF inflows since their introduction in January.
The rising demand reflects a broader strategy among retail investors who are increasingly using Bitcoin as a hedge against fiat currency risks, particularly amid concerns about the strength of the U.S. dollar.
Institutional Activity Slows as Retail Surges
While retail activity is booming, institutional interest has taken a back seat in recent weeks. JPMorgan’s analysts observed a pause in institutional bitcoin futures activity, suggesting that institutional investors are waiting on the sidelines, perhaps wary of the overbought conditions in the futures market.
“Bitcoin futures have become rather overbought, creating some vulnerability going forward,” the report noted.
Similarly, institutional investment in gold futures has stalled, despite continued demand from retail investors in gold ETFs.
Potential Trump Win to Pump a Rally
If Donald Trump were to secure a win, JPMorgan analysts believe it could intensify retail investors’ appetite for bitcoin and gold. “A Trump win could inspire retail investors to not only buy risk assets but also further embrace the ‘debasement trade,’ potentially driving additional upside for bitcoin and gold prices,” JPMorgan concluded.
This outcome aligns with JPMorgan’s bullish outlook for the broader crypto market, which they predict will see significant growth by 2025, largely fueled by the ongoing debasement trade and potential changes in the U.S. political landscape.
A bright future for Bitcoin and Gold is coming are you excited?
