JPMorgan analysts released a report on Friday indicating that the strategy of 'devaluation trading', which involves investing in assets like gold and Bitcoin to hedge against the devaluation of fiat currencies, is becoming popular. Last year saw a record inflow of $78 billion into the cryptocurrency market, with Bitcoin becoming a more significant component of investors' portfolios. (Background: Bitcoin returns to $98,000, Ethereum reaches $3,640! Bitfinex: BTC could reach $105,000 this month) (Context: Bitcoin celebrates its 16th birthday: What you should know about BTC from its genesis block to the 'national-level asset reserve competition' in 2025) JPMorgan analysts noted on Friday that the rise in gold prices over the past year has far exceeded the changes suggested by the dollar and real bond yield fluctuations, which may reflect the re-emergence of 'devaluation trading'. The record capital inflow into the cryptocurrency market in 2024 indicates that Bitcoin is also becoming a more important part of investors' portfolios. Devaluation trading refers to the strategy of investing in assets like gold and Bitcoin to hedge against the devaluation of fiat currencies, which is typically driven by factors such as inflation, rising government debt, and geopolitical instability. Analysts stated that the structural growth of gold in investors' portfolios can be seen from the amount of gold held by central banks and private investors for investment purposes. Bitcoin is also becoming an increasingly important part of investors' portfolios. With the help of Trump's victory, JPMorgan analysts dubbed 2024 as 'a key year for the cryptocurrency market', estimating a record $78 billion would flow into the cryptocurrency market. This includes a net inflow of $27 billion into crypto funds, $14 billion invested in CME futures, $14 billion raised by crypto venture funds, $22 billion in Bitcoin purchased by MicroStrategy, and $1 billion in Bitcoin purchased by miners, indicating that MicroStrategy's Bitcoin purchases alone accounted for 28% of last year's record capital inflow into the cryptocurrency market. JPMorgan estimates that overall, as the structural status of gold and Bitcoin improves, devaluation trading will continue to exist. It is worth noting that since November 2024, the inflow of Bitcoin into exchanges (the total amount of Bitcoin transferred to exchanges) and miners' outflows (the amount of Bitcoin miners send to exchanges) have significantly decreased, indicating a notable alleviation of selling pressure. According to CryptoQuant data, on November 25, 2024, Bitcoin exchange inflows peaked at 98,748 BTC, but by December of last year, the inflow had decreased, although the total daily inflow into exchanges remained between 11,000 and 79,000 BTC. Meanwhile, on November 11 of last year, miners' outflows peaked, with miners transferring 25,367 BTC to exchanges in a single day, but by January 1, 2025, miners transferred only 5,489 BTC to exchanges, dropping to 5,748 BTC on January 2 and 2,133 BTC on January 3. With the alleviation of selling pressure, Bitcoin is expected to continue its upward momentum. Bitfinex analysts stated today that Bitcoin is expected to rise to $105,000 in January and that by the end of January, Bitcoin will fluctuate between $95,000 and $110,000. Related reports include rules for U.S. crypto brokers that 'bring down Bitcoin': a bitter pill or deadly poison? Bridgewater Capital founder reveals: the Senate will approve the Bitcoin reserve plan! But the chance of purchasing 1 million coins is low. Morgan Stanley rumored to open 'cryptocurrency trading', experts predict Bitcoin could surge to $200,000. "JPMorgan: 'Devaluation trading' is on the rise, and Bitcoin is becoming a more important investment! Last year saw a record $78 billion inflow into the cryptocurrency market". This article was first published in BlockTempo (the most influential blockchain news media).

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