JPMorgan Chase Analysts Say Bitcoin and Gold Could See Additional Upside If Donald Trump Wins the U.S. Presidential Election

Analyst at JPMorgan Chase have suggested that if U.S. Presidential candidate Donald Trump wins the elections, both Bitcoin and gold could see additional upside as retail investors embrace the “debasement trade.”

If U.S. Presidential candidate Donald Trump wins the elections, both Bitcoin and gold could see additional upside as retail investors embrace the “debasement trade,” according to analysts at JPMorgan Chase.

In a recent report, JPMorgan analysts led by managing director Nikolaos Panigirtzoglou wrote that retail investors “appear to be embracing the debasement trade in an even stronger manger by buying bitcoin and gold ETFs.”

As The Block reported, retail investors have been driving net inflows into spot Bitcoin exchange-traded funds (ETFs) over the past few days, bringing October inflows to $4.4 billion and marking the third-largest month for Bitcoin ETF inflows.

The analysts noted these inflows, while institutional investors paused their BTC futures activity in recent weeks based on their Bitcoin futures position proxy, which is based on cumulative open interest changes on the institutional exchange CME.

A report from Binance Research showed that demand for BTC ETFs has been primarily driven by individual investors, who account for 80% of market activity. The report, however, noted that institutional interest grew by 30% since the first quarter of the year.

As CryptoGlobe reported, spot Bitcoin ETFs have seen their net inflows surpass $23 billion so far this year, with BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s Wise Origin Bitcoin Fund (FBTC) leading the charge.

Some analysts have linked Bitcoin’s recent price rises with U.S. Presidential candidate Donald Trump leading in election markets when it comes to election odds. Trump has taken a pro-crypto stance during this election cycle, going as far as saying there’s never been anything like Bitcoin.

JPMorgan’s report also noted that gold ETFs have been seeing inflows that are likely driven by retail investors, with institutional participation in the gold futures market halting as well. It reads:

Overall, to the extent a Trump win inspires retail investors to not only buy risk assets but to also further embrace the ‘debasement trade’, there could be additional upside for bitcoin and gold prices in a Trump win scenario.

Notably, demand for gold has reached a historic milestone in the third quarter, surpassing $100 billion for the first time, according to a new report from the World Gold Council (WGC), in a surge fueled by geopolitical tensions and a flight to safe-haven assets, which propelled the precious metal to record-breaking prices.

Total gold demand rose 5% year-over-year to 1,313 metric tons, with its value surging by a staggering 35%. The gold rush has been so strong that gold funds saw an influx of $3 billion last week.

Featured image via Unsplash.