COINOTAG News reported on November 7th, highlighting insights from JPMorgan analysts who suggest that the U.S. presidential election outcome, specifically Trump’s victory, may positively affect both gold and Bitcoin. The analysts emphasize the concept of the ‘Currency Debasement Trade’, an investment approach that capitalizes on devaluation risks associated with inflation and expansive fiscal policies. As a result, investors are likely to allocate funds towards precious assets like gold and bitcoin, which traditionally preserve their value amidst a dwindling monetary purchasing power.
The analytical team led by Managing Director Nikolaos Panigirtzoglou articulated in their report that the market’s initial unfavorable response of gold post-election does not diminish the validity of the ‘Currency Debasement Trade’. On the contrary, they noted that Bitcoin’s subsequent price increase signifies continued investor confidence.
Furthermore, retail interest has surged, evident in the uptick in gold and bitcoin ETFs since last summer, a trend projected to proceed until 2025. Analysts anticipate that Trump’s economic policies will further solidify this investment momentum.
Beyond political influence, MicroStrategy may contribute to Bitcoin’s growth via its ambitious ’21/21 plan’, which aims to raise $42 billion over three years for Bitcoin investments. This could mean an influx of $10 billion into Bitcoin in 2025, highlighting the company’s aggressive market stance.
