Investors are holding onto the “gold and Bitcoin exchange” as they prepare for ongoing global political unrest, according to a report by JPMorgan published on January 3rd, which was also shared with CryptoMoon. This means that this trade is likely to continue in the future.
Investors are finding gold and Bitcoin to be significant additions to their investment portfolios due to their role in protecting against geopolitical risks and inflation, according to the bank. This shift is supported by the substantial increase in funding flowing into the cryptocurrency markets in the year 2024.
The “debasement trade” refers to an increasing interest in gold and Bitcoin, driven by various factors since 2022, such as escalating geopolitical tensions, ongoing uncertainty about future inflation rates, and worries about the accumulation of debt across significant economies due to continued high government deficits. In simpler terms, it’s a trend where people are buying more gold and Bitcoin because of rising geopolitical issues, uncertainties about long-term inflation, and concerns over excessive government borrowing in major countries. (JPMorgan’s statement)
Institutional inflows
Investment experts like Paul Tudor Jones are increasingly buying Bitcoin and other commodities due to concerns that inflation may rise significantly in the U.S.
As an analyst, I’d rephrase that statement as follows: In my analysis, several U.S. state governments are considering Bitcoin as a means to protect against potential financial uncertainties, a viewpoint expressed by asset manager VanEck in December.
In October, JPMorgan suggested that the increasing activity in Bitcoin futures could imply that investment funds view Bitcoin and gold as comparable assets.
By the end of 2024, the total amount of open Bitcoin futures contracts significantly increased from around $18 billion in January to over $55 billion in December, as per data gathered by CoinGlass.
Furthermore, the return of investments into Bitcoin exchange-traded funds in September following a withdrawal in August indicates that individual investors may view Bitcoin and gold as comparable assets,” JPMorgan stated in October.
For the first time ever, as reported by Bloomberg Intelligence, U.S. Bitcoin Exchange-Traded Funds (ETFs) collectively surpassed $100 billion in total assets in November.
Crypto ETF inflows are crucial to monitor since they often represent fresh capital or new market entrants in the cryptocurrency market, as suggested by a December report by Citi that was made available to CryptoMoon.
As a researcher, I’ve been exploring potential market movements of Bitcoin, and according to Sygnum Bank’s prediction from December, a surge in institutional investments could lead to a significant increase in demand for Bitcoin, potentially resulting in a price hike for BTC in the year 2025.
Read More
- HBAR PREDICTION. HBAR cryptocurrency
- IMX PREDICTION. IMX cryptocurrency
- JTO PREDICTION. JTO cryptocurrency
- TRB PREDICTION. TRB cryptocurrency
- LDO PREDICTION. LDO cryptocurrency
- MNT PREDICTION. MNT cryptocurrency
- FLOKI PREDICTION. FLOKI cryptocurrency
- TNSR PREDICTION. TNSR cryptocurrency
- DGB PREDICTION. DGB cryptocurrency
- XDC PREDICTION. XDC cryptocurrency
2025-01-06 20:01