**JPMorgan Analysts Anticipate Retail Demand for Bitcoin and Gold Could Rise with Potential Trump Victory**
In a recent report, JPMorgan analysts, spearheaded by managing director Nikolaos Panigirtzoglou, suggested that a potential win for Donald Trump in the upcoming U.S. presidential election might stimulate retail interest in both bitcoin and gold. They observed that:
Retail investors seem to be increasingly engaging in the 'debasement trade' by investing in bitcoin and gold exchange-traded funds (ETFs).
The analysts noted a significant uptick in retail activity, not only in bitcoin and gold ETFs but also in “meme and AI tokens, which have outperformed in market capitalization.”
A remarkable surge in bitcoin ETF inflows was highlighted, with retail investors contributing $1.3 billion in a mere two days, bringing October's total to $4.4 billion—marking the third-highest monthly inflow since January. However, institutional investors continue to exercise caution. The analysts cautioned that “Bitcoin
BTC
+0.39% futures have become quite overbought, resulting in potential vulnerabilities moving forward,” pointing to a decline in institutional demand for bitcoin futures. In a similar vein, while retail investors are actively purchasing gold ETFs, there has been a noticeable slowdown in institutional interest in gold futures.
The analysts expressed optimism that ongoing macroeconomic uncertainties, inflation worries, and a rise in retail trading could bolster cryptocurrency growth through 2024. They concluded:
Overall, if a Trump victory encourages retail investors not just to acquire risk assets but also to further engage in the 'debasement trade,' there could be additional upward momentum for bitcoin and gold prices in such a scenario.
On a different note, JPMorgan CEO Jamie Dimon remains skeptical about bitcoin, despite the bank's broader interest in blockchain technology and digital assets. In a recent interview, he stated that bitcoin “doesn’t have value.” Dimon has also associated bitcoin with illicit activities and expressed the need for stricter regulations if he were in a governmental position. While JPMorgan supports blockchain initiatives and various crypto products like ETFs, Dimon himself maintains a critical stance toward bitcoin as an investment.