JP Morgan analysts see a strong future for gold and bitcoin under Trump

With Donald Trump now elected as the next US President, market sentiments are positive as experts predict Bitcoin will cross major benchmarks by 2025. Moreover, JPMorgan analysts have a bullish outlook on gold and bitcoin. The bank's team, led by managing director Nicolas Panigirtzoglou, highlighted the term “business of humiliation”.

This is an investment strategy that thrives on currency declines caused by inflationary policies and expansionary fiscal measures.

This strategy generally benefits from currency depreciation or weakening due to inflationary or expansionary fiscal policies. In this trade, investors buy assets such as gold and bitcoin, which are considered a store of value that can maintain their value even if the purchasing power of the currency declines.

In a report on Wednesday, analysts at JPMorgan noted that dovish trading “could be strengthened by both tariffs and geopolitical tensions, as well as expansionary fiscal policy (“debt deleveraging”). Gold markets react to rejection of ‘degradation trade' under Trump victory. After all, Bitcoin, another part of the “corrupt business” has joined after Trump's victory.

After Trump's victory was confirmed on the day of the election results, Bitcoin managed to register a new all-time high of $76,244. It is now trading at $74,847. Specifically, the analysts are positive on Bitcoin in 2025.

The price of gold and bitcoin is expected to increase

The analysts pointed out that the rate at which the central bank buys gold will be crucial in determining the price of gold until 2025.

In the year In 2022, after the Ukraine war flared up and sanctions were imposed on Russia, central banks significantly increased their gold holdings. Although the People's Bank of China, the country's central bank, ended its gold purchases last April, ongoing tariffs and geopolitical tensions are expected to push central banks, including the PBoC, away from dollar holdings and into gold, analysts said. .

As investments in gold and bitcoin ETFs have increased since last summer, retail investors are also favoring both gold and bitcoin, and analysts believe this trend will continue in 2025, and Trump's policies will support both assets.

Micro strategy 21/21 plan to grow BTC

Additionally, it is MicroStrategy's bold Bitcoin acquisition plan that will further boost Bitcoin's value. The plan includes raising $42 billion in capital over the next three years, with $21 billion coming from equity and $21 billion from fixed income securities. Analysts have indicated that Microstrategy will invest 10 billion dollars for 2025 alone.

Trump's victory triggered a huge rally in stocks, and cryptocurrencies, as well as a rise in the value of the dollar. As Trump promised in his campaigns, the crypto industry expects ease in regulation so that America can serve as a hub for digital assets and innovation.