Donald Trump’s return to the White House has sparked optimism in the crypto market, with analysts predicting positive impacts due to his crypto-friendly approach. JPMorgan experts foresee gains for both Bitcoin and gold. They also highlight MicroStrategy’s ambitious $42 billion BTC acquisition plan as a key driver of Bitcoin’s future strength.
JPMorgan’s Optimistic Forecast for Gold and Bitcoin
Following Trump’s victory, experts anticipate that Bitcoin could achieve significant milestones by 2025, fueling a wave of market optimism. JPMorgan analysts are confident in the outlook for both gold and Bitcoin, noting a shift toward “devaluation trades” — a strategy that focuses on assets that can preserve value amid inflationary monetary policies and currency depreciation. This approach favors assets like gold and Bitcoin, which act as safe-haven stores of value as fiat currencies lose purchasing power.
Led by JPMorgan’s Nikolaos Panigirtzoglou, the analysts emphasize that devaluation trades are likely to gain strength due to rising tariffs, geopolitical tensions, and expansionary fiscal policies. Analysts at JPMorgan stated:
“We don’t interpret gold’s initial negative market reaction to Trump’s victory as a rejection of devaluation trade. Bitcoin, the other component of devaluation, surged following Trump’s win.”
Expectations for Rising Gold and Bitcoin Prices
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The analysts also highlight the importance of central bank gold purchases in determining gold’s trajectory up to 2025. Following the escalation of the Ukraine conflict and sanctions against Russia, central banks significantly increased their gold holdings in 2022. Although the People’s Bank of China (PBoC) halted its purchases in April, analysts predict that trade tariffs and geopolitical strains may lead central banks, including the PBoC, to move away from dollar reserves in favor of gold.
Since last summer, inflows into gold and Bitcoin ETFs have also increased, indicating robust support from retail investors. Analysts expect this trend to continue through 2025, with Trump’s policies likely to further bolster both assets.
Will MicroStrategy’s Bold BTC Plan Drive Prices Higher?
MicroStrategy’s substantial BTC acquisition strategy is expected to support Bitcoin’s price growth. The company plans to raise $42 billion over three years, with $21 billion from equity and another $21 billion from fixed-income securities. Analysts predict that in 2025 alone, MicroStrategy will invest $10 billion into Bitcoin, nearly matching its cumulative purchases since 2020.
As November brings crucial developments in the crypto market, many investors are watching to see how Trump’s policies and MicroStrategy’s BTC investments will shape the market.
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