JPMorgan Predicts a Rise in Bitcoin and Gold Prices Should Ex-President Donald Trump Secure a Victory

Analysts at JPMorgan, led by managing director Nikolaos Panigirtzoglou, suggest that a Trump win could intensify the “debasement trade” trend

JPMorgan analysts predict a rise in Bitcoin (CRYPTO: BTC/USD) and gold prices if ex-President Donald Trump secures a victory as the apex crypto sees a surge of interest from institutional investors.

A Trump Win Could Boost Bitcoin, Gold Prices: A JPMorgan analysis, led by managing director Nikolaos Panigirtzoglou, suggests that a Trump win could intensify the "debasement trade" trend, where retail investors are buying Bitcoin and gold ETFs to protect themselves from currency devaluation, reported The Block on Thursday.

In recent days, net inflows into spot Bitcoin ETFs hit $1.3 billion, contributing to a total of $4.4 billion for October. This marks the third-largest monthly inflow since Bitcoin ETFs were launched in January, largely driven by retail interest in alternative assets.

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Institutional investors, however, largely sat out on Bitcoin futures, with JPMorgan noting a pause in their activity. The analysts highlighted that Bitcoin futures have become "overbought," posing potential risks.

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Gold ETFs also saw steady inflows, mainly from retail investors, while institutional participation in gold futures paused. The analysts concluded that a Trump win could further boost Bitcoin and gold prices as retail investors engage in the "debasement trade."

The analysis comes as the 2024 presidential election is heating up, with Trump and Vice President Kamala Harris as the frontrunners. A recent poll by Harvard CAPS-Harris shows Trump leading the race by 1%.

Both candidates have expressed varying stances on cryptocurrency regulation, with Trump hinting at support for the industry and Harris calling for a closer examination of cryptocurrencies and stablecoins.

After the 2020 election, both Biden and Harris met virtually with crypto exchange executives to discuss the industry's future. Despite the meeting, the Biden administration has yet to roll out any major crypto legislation.

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