JPMorgan analysts have identified a “debasement trade,” in which the price of Bitcoin could reach new heights.
According to an analysis recently presented by the private bank, investors tend to turn to assets such as gold and Bitcoin to protect themselves against the devaluation of fiat currencies. In this context, the bank's analysts said they expect the debasement trade to be reinforced by both geopolitical tensions and the expansionary fiscal policies that Donald Trump could implement in his new administration.
JPMorgan said the Republican victory could be a catalyst for this trade, prompting investors to buy assets such as gold and Bitcoin. Both are currently considered reserve assets, which can maintain their value even when a currency's purchasing power declines, analysts said.
The bank also highlighted the price increase experienced by Bitcoin following Donald Trump's election victory. Nikolaos Panigirtzoglou from the private bank wrote that after this recovery in the price of the cryptocurrency, it was quite likely that the downside trading would be reinforced.
As reported by this outlet, the price of Bitcoin soared to an all-time high of $75.360 on November 5, the day of the US presidential election. Then, on November 6, after Donald Trump's re-election was announced, the cryptocurrency reached a record high of $XNUMX. New all-time high (ATH) price of $76.460 per BTC.
This increase in the bitcoin price reflects market investors' anticipation of crypto-friendly policies under the new Trump administration.
MicroStrategy's aggressive Bitcoin acquisition plan
JPMorgan analysts also cited MicroStrategy’s strategic plan to invest $42.000 billion in Bitcoin as adding fuel to the bullish outlook on the market-leading cryptocurrency.
This plan, presented by Michael Saylor's business intelligence firm, proposes an aggressive Bitcoin acquisition strategy called «21/21 plan»The company aims to raise $42.000 billion over the next three years, comprising $21.000 billion in equity and $21.000 billion in fixed-income securities. All of this, to invest in Bitcoin and increase its current reserves, which exceed $19.170 billion, with 252.220 BTC in its corporate treasury.
Source: Bitcoin Treasuries
«By 2025 alone, MicroStrategy is said to be investing $10.000 billion in Bitcoin, which is roughly equal to its cumulative purchases so far since mid-2020», noted JPMorgan analysts, who expect this substantial investment to have a significant impact on the Bitcoin market and price.
Trump's pro-crypto stance
Donald Trump’s pro-crypto stance, including appointing a pro-crypto SEC chairman, establishing a National Bitcoin Reserve, and creating a tailored regulatory framework for crypto assets, have raised hopes for a more favorable environment in the United States.
The bank's analysts believe that the combination of all the above elements will positively influence the dynamics of the Bitcoin market, creating a bullish horizon for its price in the coming months.
However, JPMorgan did not specify an exact figure on its estimates of the future price of Bitcoin. Simply, when asked about a target price for the cryptocurrency for the next year, Panigirtzoglou commented that the private bank “is positive on Bitcoin until 2025”.
