The U.S. presidential election outcome, with Donald Trump emerging victorious, has sparked optimism for gold and Bitcoin (BTC). According to JPMorgan analysts, these assets are expected to perform well in the coming months, driven by a “value loss trade” strategy. This approach involves investing in safe-haven assets to hedge against potential currency depreciation amid inflationary or expansionary monetary policies.
Central Banks Turning to Gold
JPMorgan analysts highlight that gold prices will likely be influenced by central bank buying through 2025. In 2022, demand for gold accelerated following the Ukraine conflict and sanctions on Russia. However, the People’s Bank of China paused its gold purchases last April.
Analysts suggest that current tariffs and rising geopolitical tensions may encourage central banks to reduce U.S. dollar reserves and increase gold holdings, especially in countries like China where this trend is expected to continue.
Growing Demand for Bitcoin
Bitcoin, the largest cryptocurrency by market cap, surged to an all-time high of $76,244 following the 2024 U.S. presidential election results. It currently trades around $75,100, continuing to capture market interest.
JPMorgan analysts predict a positive outlook for Bitcoin through 2025. Institutional investors like MicroStrategy are showing sustained interest in Bitcoin, with the company’s “21/21 plan” outlining a $42 billion investment in Bitcoin over the next three years. This plan translates to an annual $10 billion investment, which could play a significant role in supporting Bitcoin’s price in 2025.
Stay tuned to Dey There for further insights on the evolving crypto and commodity markets.
Bitcoin, gold, JPMorgan, value loss trade, institutional investment
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