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JP Morgan sees Bitcoin gains lasting eight weeks

JP Morgan sees Bitcoin gains lasting eight weeks

GrafaGrafa2024/11/08 04:00
By:Liezl Gambe

Analysts at JP Morgan predict Bitcoin’s strong performance will continue for at least eight weeks following Donald Trump's recent U.S. presidential victory.

According to a Thursday report, Bitcoin, the largest cryptocurrency by market cap, is set to benefit from the "Trump trade" as it did after the 2016 election.

Bitcoin’s price surged leading up to Trump's win and is now priced at $76,615, based on CoinGecko data.

“We continue to see room for the Trump trade to reverberate over the coming eight weeks or so in a similar fashion to 2016,” JP Morgan's report noted.

It further mentioned that although Bitcoin has risen sharply, and gold has declined, “Trump policies are likely to be supportive of both into 2025.”

The analysts pointed out that Bitcoin and gold might both see gains due to a "debasement trade," where traders seek assets that hedge against weakening currencies amid economic and geopolitical challenges.

This view aligns with their report from last week, which also highlighted the potential benefits for both assets.

A Trump presidency, characterized by increased geopolitical tensions and a focus on tariffs as bargaining tools, is seen as supportive of such investment strategies.

Trump has emphasized his intent to use tariffs, particularly in negotiations with China.

This policy, combined with his stated support for the digital asset sector, could potentially strengthen Bitcoin’s position as an inflation hedge and a secure investment in uncertain times.

Bitcoin has been noted as a tool for hedging inflation and as an attractive option during economic uncertainty, despite its closer correlation with tech stocks in recent times.

The combination of rising geopolitical risks and supportive policies under Trump could maintain Bitcoin’s upward momentum, according to industry experts.

At the time of writing, the Bitcoin price was $76,108.01.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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