The recent conclusion of the U.S. election, with Trump emerging victorious, has prompted various institutions to release their analyses. JPMorgan analysts have predicted that this wave of the “Trump trade effect” will significantly drive Bitcoin’s rise, expecting this strength to persist until the end of 2024 and potentially continue into 2025.
Trump’s Victory Spurs Bitcoin Surge, Analysts Optimistic About Growth Continuing Through 2025
JPMorgan analysts point out that Trump’s repeated expressions of support for the development of the cryptocurrency industry have brought policy-related benefits to Bitcoin and other crypto assets. On the day of Trump’s victory, Bitcoin’s price surged and continued to rise to a historical high of $76,000, with the potential to climb further before the end of 2024, and it is likely to continue into 2025. As Trump is set to implement policies, both Bitcoin and gold, as safe-haven assets, will benefit. Analysts state that such a “Trump trade” effect is similar to the market volatility triggered by Trump’s inauguration in 2016.
Geopolitical Impact on “Debasement Trade,” Bitcoin and Gold to Benefit Simultaneously
Analysts highlight that Trump previously stated during the election campaign that he would impose tariffs on China and other trade partners to gain negotiation leverage. Now, with Trump’s victory, such policies may further stimulate geopolitical risks and the weakening of fiat currencies, thereby increasing safe-haven demand and consequently boosting Bitcoin and gold’s debasement trade. They also note that although Bitcoin has shown a high correlation with Wall Street and tech stocks in recent years, its “inflation-resistant nature” and “hedging aspects” continue to be valued by investors.
Federal Reserve Cuts Rates by 0.25%: Bitcoin Reaches New High
On November 8, the Federal Reserve announced a 0.25% rate cut, bringing the target rate range to 4.5% to 4.75%, maintaining the post-election rally. This marks the second consecutive rate cut announced by the Federal Reserve. Bitcoin also surged to $76,000 last night, experiencing a slight pullback but still holding steady at $75,000.
(Federal Reserve Cuts Rates by 0.25%, Powell Says He Won’t Resign, Bitcoin Reaches New High)