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Cryptocurrency News Articles
Bitcoin Price Prediction: BTC Could Rocket Pre-US Election as JPMorgan Analysts See 'Debasement Trade' Driving Rally
Oct 08, 2024 at 09:01 pm
Bitcoin has rocketed higher this year as a perfect storm of Wall Street adoption, Federal Reserve interest rate cuts and surprise support from former president Donald Trump drive a price boom—with further "fireworks" predicted.
Bitcoin has seen a wild ride in 2024, hitting a previous all-time high of over $70,000 per bitcoin before dropping back to around $60,000 as the U.S. and China begin what could become a crypto cold war.
Now, as Tesla billionaire Elon Musk warns the U.S. could collapse under the weight of its $35 trillion debt pile, JPMorgan analysts have predicted a so-called "debasement trade" could fuel a bitcoin price boom going into the U.S. election—with Trump expected to add $7.5 trillion to U.S. debt.
"Rising geopolitical tensions and the coming U.S. election are likely to reinforce what some investors call the 'debasement trade' thus favoring both gold and bitcoin," JPMorgan analysts led by Nikolaos Panigirtzoglou wrote in a note to clients seen by Marketwatch.
Gold and bitcoin could be boosted by "persistently high government deficits across major economies, to waning confidence in fiat currencies in certain emerging markets, and to a broader diversification away from the dollar," according to the analysts who said a Trump election win would likely reinforce the debasement trade.
Trump is forecast to increase the federal debt by around twice the increase expected if Democratic Party candidate Kamala Harris is elected, according to a report from the non-partisan Committee for a Responsible Federal Budget.
Trump would raise federal debt by $7.5 trillion by 2035 if he retakes the White House next month while vice president Harris is estimated to increase the debt by $3.5 trillion over the same period.
U.S. national debt has skyrocketed in recent years, crossing the $34 trillion mark at the beginning of 2024, largely due to Covid and lockdown stimulus measures.
JPMorgan analysts later wrote the bitcoin price has "yet to see the ‘pop’ ... expected from lower rates since the Fed's September 18 cut," predicting in a note seen by The Block that the market may be waiting for more sustained stability before making a major move.
Despite Tesla billionaire Elon Musk's concerns about the out-of-control U.S. debt pile, causing him to warn last week the U.S. could collapse into "bankruptcy," Musk has doubled down on his endorsement of Trump during a rally in Butler, Pennsylvania, the site of the first assassination attempt on Trump in July.
Trump now leads Harris by almost three percentage points in the crypto-powered Polymarket's election contract, with 52% to 46%.
Meanwhile, billionaire investor Mark Cuban has teased a plan floated by Trump to pay off U.S. national debt with bitcoin or crypto—and the Doge Department of Government Efficiency backed by Musk.
"We don't know what Elon would actually do," Cuban said during an appearance on the All-In Podcast alongside fellow investors David Friedberg, Chamath Palihapitiya, Jason Calacanis and David Sacks, responding to a question about how the U.S. could begin to tackle its huge debt pile.
"Maybe [he'll] put doge in the Treasury, who knows, and that's how we make it all up," Cuban joked, referring to Elon Musk's on-again-off-again relationship with the meme-based bitcoin rival dogecoin.
Earlier this year, Trump floated the possibility of using bitcoin to pay off the U.S.'s $35 trillion debt pile.
" Crypto is a very interesting thing," Trump told Fox Business in August. "Maybe we'll pay off our $35 trillion, hand them a little crypto check, right? We'll hand them a little bitcoin and wipe out our $35 trillion."
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- Oct 09, 2024 at 12:25 am
- American A-list celebrity rapper Cardi B posted on X (formerly Twitter) this morning, promoting a new memecoin called “WAP,” named after her hit song with Megan Thee Stallion. However, many of her fans are questioning if the post was real or if her account had been hacked.
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- Bitcoin (BTC) Likely To Reach A New All-Time High By The Year's End
- Oct 09, 2024 at 12:25 am
- Timothy Peterson, an author and network economist has cited a positive outlook for Bitcoin in Q4 of 2024, predicting that the crypto asset could be gearing up for a short-term price surge, possibly to a new all-time before the end of the year.