PANews reported on January 5, citing The Block, that JPMorgan analysts stated that Bitcoin and gold are structurally becoming key components of investors' portfolios. JPMorgan analyst Nikolaos Panigirtzoglou wrote in a report: 'Over the past year, the rise in gold prices has far exceeded the trends implied by changes in the dollar and real bond yields, likely reflecting the re-emergence of this 'devaluation trading'.' They also added that, meanwhile, record capital inflows into the crypto market in 2024 indicate that Bitcoin is also becoming a 'more important component' in investors' portfolios.
Devaluation trading refers to a strategy where investors turn to assets like gold and Bitcoin to hedge against the devaluation of fiat currency. This devaluation is often driven by factors such as inflation, rising government debt, and geopolitical instability.
Analysts noted that based on the amount of gold held by central banks and private investors, the structural growth of gold in investors' portfolios is evident. This includes physical gold, gold ETFs, and other investment tools, which currently account for a significant portion of the total assets held by non-bank investors globally.
Overall, analysts believe that as the structural importance of gold and Bitcoin continues to rise, devaluation trading will persist. In October last year, analysts were optimistic about the development of cryptocurrencies in 2025, citing factors such as devaluation trading and increasing institutional adoption rates.
