Following his historic reelection this year, JPMorgan projects that both Bitcoin and Gold will be set to benefit from Donald Trump’s return to the White House. The bank’s top analysts expect that both assets will continue to gain well into his second term, as they’ve already responded to his victory with massive increases.
Bitcoin has skyrocketed after the Associated Press called the race. The leading cryptocurrency surged to an all-time high above $76,000 on Wednesday. Moreover, the token is up more than 19% over the last 30 days, according to CoinMarketCap. Although gold hasn’t set a landmark record since Trump won, it is closing in on the $2,7000 price point.
Also Read: US Stock Market: How it Responded to Donald Trump’s 2024 Election Win
Donald Trump Return to Push Gold and Bitcoin Higher, JPMorgan Says
The 2024 US Election was always poised to be one of the country’s most important. With the nation on the brink of a massive economic crossroads, a clear direction was necessary. In what was a historic ending, Donald Trump emerged victorious over current Vice President Kamala Harris.
That win was massive for both the cryptocurrency sector and the stock market. That is expected to continue, as JPMorgan says Bitcoin and Gold should be set to benefit from a second Trump presidency. In a late October research note, analysts say both assets should grow amid geopolitical tension regarding the US dollar.
Source: The Financial Technology Expert
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JPMorgan analysts stated that a “debasement trade” is on its way. Moreover, they predicted both assets would have a positive reaction to his return—a prediction that was proven true based on the market’s various positive reactions. They expect the market to continue hedging against the US dollar.
“Rising geopolitical tension and the coming US election are likely to reinforce what some investors call the ‘debasement trade’ thus favoring both gold and Bitcoin,” analysts said. It will be interesting to see how the US dollar responds. To this point, it has performed exceptionally well following Trump’s win. The victory could prove better for the greenback than gold, considering their position geopolitically.
