JP Morgan’s Latest Report
Bitcoin is rallying, and so is Gold. The two assets could continue rising in value in the coming weeks if the Republican presidential candidate, Donald Trump, wins the election on November 5th, according to analysts from JP Morgan.
On Thursday, the financial institution said that Trump’s victory could lead to a ‘debasement trade,’ which will likely increase the demand for Bitcoin and Gold, thus pushing their prices up. For starters, a debasement trade happens when investors abandon fiat-based investments to hedge against government deficits, weakening currencies, and geopolitical headwinds.
For many years, Gold has been considered a top insurance policy against weakening fiat currencies. And now, leading asset management firms like BlackRock tout Bitcoin as another financial instrument investors can consider during uncertainties.
Why Bitcoin Could Rally if Trump Wins
In its report, JP Morgan noted that Donald Trump’s proposed policies to raise tariffs could cause more inflation, thus forcing investors to shift their focus from traditional investments. Furthermore, since the Republican candidate has promised a clear regulatory framework for crypto, analysts at JP Morgan say his win could attract institutional investors to the digital asset space.
Also read:Notably, Trump was anti-crypto a few years ago, labeling Bitcoin a scam at some point. However, in recent months, he has been active in the blockchain sector, launching various projects, including a decentralized finance platform called World Liberty Financial and numerous NFT collections.
Donald Trump’s Involvement in Crypto
Furthermore, the former US President has attended various crypto-related events this year, such as the Bitcoin Conference in Nashville on August 10th. Also, he met with US-based crypto miners earlier this year and promised to create a conducive mining environment to ensure all the remaining BTC is mined in the United States.
While most crypto enthusiasts believe Trump wants the best for the industry, some are convinced that he is only hunting for votes and could abandon the crypto community once elected.
Meanwhile, data from CoinGecko shows Bitcoin trading at $69,674. The coin came near its all-time high on Tuesday. Gold, on the other hand, peaked at $2,789 on Wednesday before plummeting to $2,747 at press time.
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