Bullish Outlook: JPMorgan Sees Bitcoin Poised for Gains Through 2025

Global investment bank JPMorgan released a report on Thursday, detailing how Donald Trump's recent victory in the U.S. presidential election may boost both bitcoin and gold investments

Global investment bank JPMorgan has provided a bullish outlook for bitcoin in a recent report, indicating that the cryptocurrency may benefit from Trump’s economic policies and an intensified “debasement trade” strategy.

The report, published on Thursday, highlights how bitcoin and gold are often favored as hedges against currency devaluation, a tactic known as the “debasement trade.” This strategy aims to acquire assets that tend to retain value during periods of inflation or fiscal policies that expand national debt, leading to a decrease in the purchasing power of fiat currencies.

According to JPMorgan’s managing director Nikolaos Panigirtzoglou, Trump’s policies could amplify this debasement trade, considering factors such as tariffs, geopolitical tensions, and expansive fiscal measures that increase debt.

“We do not see the initial negative market reaction by gold as a rejection of the ‘debasement trade’ under a Trump win,” Panigirtzoglou explained to The Block. “After all, bitcoin, the other component of the ‘debasement trade’ rallied after the Trump win.”

Following the U.S. presidential election, bitcoin’s price surged to an all-time high of $76,244 on Nov. 6, before stabilizing at around $75,100.

Moreover, JPMorgan analysts anticipate sustained momentum for bitcoin, partly driven by Microstrategy’s aggressive investment approach, known as the “21/21 plan.” This strategy aims to raise $42 billion over three years, with funds allocated equally between equity and fixed-income securities.

“For 2025 alone MicroStrategy would be investing $10 billion into bitcoin which is roughly equal to its cumulative purchases so far since mid-2020!” the report noted.

The bank also observed a rise in retail investment in bitcoin and gold, particularly through exchange-traded funds (ETFs). This trend, which has been evident since last summer, is expected to continue in 2025 during Trump’s administration.

Additionally, central banks are likely to increase demand for gold as institutions like China’s People’s Bank diversify reserves in response to tariffs and geopolitical uncertainties.