JPMorgan's Expected Statement: How Will Bitcoin Be Affected by the US Election?

With the US elections approaching, JPMorgan analysts predict that Donald Trump's victory could create momentum for Bitcoin.

The analyst team led by JPMorgan's managing director Nikolaos Panigirtzoglou stated that if Trump wins, retail investors may adopt the "debasement trade" trend, known as a "protection against value loss" strategy, more strongly. The report stated, "Retail investors are turning to debasement trade by purchasing Bitcoin and gold ETFs more intensively." This trend is also reflected in the increasing interest in meme and artificial intelligence tokens.

In the last two days, a net inflow of $1.3 billion was made to spot Bitcoin ETFs, and the total inflow in October reached $4.4 billion. This figure stands out as the third largest monthly inflow since Bitcoin ETFs were launched in January. According to analysts, this increase is a result of interest in alternative assets as a hedge against currency depreciation.

On the other hand, institutional investors' interest in Bitcoin futures has significantly decreased in recent weeks. In their analysis based on data on Bitcoin futures contracts on the Chicago Mercantile Exchange (CME), JPMorgan analysts stated that such contracts have reached overbought levels and could pose a potential vulnerability for the market.

Gold ETFs continue to be supported by retail investors in a similar way, while institutional investors' gold futures activity has slowed. JPMorgan analysts stated that Trump's victory could push retail investors more into risky assets and debasement trades, which could create an additional rise in Bitcoin and gold prices.