After the 2024 presidential elections, JPMorgan analysts expect that Trump’s return to the White House will benefit Gold and Bitcoin. According to analysts, both assets will gain in the president’s second round.

The surge in Bitcoin to an all-time peak of $76,000 on Wednesday after the Associated Press revealed the vote counts. Moreover, the crypto asset has also shown an increase of 19% in the past 30 days, as per CoinMarketCap. Although gold hasn’t reached its highest since Donald Trump won, it is approaching the $2600 price point.

Retail investors embrace Bitcoin and gold as hedge tools

JPMorgan predicts that both #Bitcoin and gold stand to benefit from a potential second term for Donald Trump. 💰📈 #Crypto

You are not bullish enough!

— Conor Kenny (@conorfkenny) November 7, 2024

JPMorgan analysts asserted that Trump’s massive victory was beneficial for the crypto industry and the stock market. According to the analysts, the pump in both sectors will likely continue under his presidency, with both assets expecting growth amid the geopolitical tension surrounding the US dollar. JPMorgan’s Panigirtzoglou stated that the analysts predicted a spike in Bitcoin and gold prices with what they termed as the ‘depreciation trading’ strategy.

The analyst’s report revealed that while gold had dipped 0.8% post-Trump’s election, Bitcoin had gained 10% in the last two days, including reaching an all-time high. The price actions suggested that markets focused more on pro-growth policies rather than the risks of increasing deficits and Trump tariffs. Notably, the analysts observed that the dollar continued to strengthen as markets perceived that tariffs would push for further ‘U.S. exceptionalism.’ 

According to Panigirtzoglou, the ‘devaluation strategy’ that profited from currency devaluation would benefit assets such as Bitcoin and gold. He highlighted that both were often perceived as stable stores of value amid expansionary and inflationary policies. JPM analysts expected the strategy to be strengthened by expansionary fiscal policy and geopolitical tensions, pushing gold and Bitcoin prices even higher.

“We do not see the initial negative market reaction by gold as a rejection of the “debasement trade” under a Trump win…We are bullish about Bitcoin.”

-Nikolaos Panigirtzoglou

The JPM report indicated that central banks’ activities would drive gold prices into 2025. The Wall Street firm geopolitical issues and tariffs could prompt China’s central bank to embark on accumulating gold reserves despite taking a break from buying gold in April.