JPMorgan analysts predict a rise in Bitcoin BTC/USD and gold prices should Ex-President Donald Trump secure a victory as the apex crypto sees a surge of interest from institutional investors.
What Happened: Analysts at JPMorgan, led by managing director Nikolaos Panigirtzoglou, suggest that a Trump win could intensify the “debasement trade” trend, where retail investors purchase Bitcoin and gold ETFs as a safeguard against currency devaluation, The Block reported on Thursday.
In recent days, net inflows into spot Bitcoin ETFs have reached $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, driven by retail interest in alternative assets.
Institutional investors have largely retreated from Bitcoin futures, with JPMorgan noting a pause in their activity. The analysts highlighted that Bitcoin futures have become “overbought,” posing potential risks.
Also Read: Bitcoin White Paper Turns 16 On Halloween—Don’t Let Its Price Increase Since 2010 Spook You
Gold ETFs have also seen steady inflows, primarily from retail investors, while institutional participation in gold futures has similarly paused. The analysts concluded that a Trump win could further boost Bitcoin and gold prices as retail investors embrace the “debasement trade.”
Why It Matters: While recent inflows into Bitcoin ETFs are notable, some analysts have cautioned that the growth potential in the year’s final quarter may be limited, saying the conditions necessary for a significant price surge, similar to 2021, are currently absent.
However, the cryptocurrency industry is optimistic about a more supportive regulatory environment post-election, regardless of the outcome. Industry leaders are preparing for potential shifts in policy that could benefit the sector.
Trump and Vice President Kamala Harris are virtually tied in a close election race, although Trump enjoys the backing of whale accounts on prediction market platform Polymarket.
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