The Trump Effect on Gold and Bitcoin: JPMorgan’s Bullish Outlook

Betty Ligmart
By Betty Ligmart Add a Comment
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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.

The Trump Effect on Gold and Bitcoin: JPMorgan’s Bullish Outlook = The Bit Journal

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.

The Trump Effect on Gold and Bitcoin: JPMorgan’s Bullish Outlook = The Bit Journal

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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Disclaimer

The price predictions and financial analysis presented on this website are for informational purposes only and do not constitute financial, investment, or trading advice. While we strive to provide accurate and up-to-date information, the volatile nature of cryptocurrency markets means that prices can fluctuate significantly and unpredictably.

You should conduct your own research and consult with a qualified financial advisor before making any investment decisions. The Bit Journal does not guarantee the accuracy, completeness, or reliability of any information provided in the price predictions, and we will not be held liable for any losses incurred as a result of relying on this information.

Investing in cryptocurrencies carries risks, including the risk of significant losses. Always invest responsibly and within your means.

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Financial Writer Hello, my name is Betty, and I am a content editor. My passion lies in creating high-quality content that informs, engages, and inspires my readers.As a finance journalist, I cover a wide range of topics, including cryptocurrencies, which I believe have the potential to disrupt traditional financial systems. I strive to deliver accurate and insightful reporting that helps my readers navigate the complex world of finance.
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