J.P. Morgan analysts released a report on Friday indicating that the 'devaluation trading' strategy, which involves investing in assets such as gold and Bitcoin to hedge against the devaluation of fiat currencies, is becoming prevalent. Last year, a record $78 billion flowed into the cryptocurrency market, and Bitcoin is becoming an increasingly important component of investors' portfolios. (Background: Bitcoin returns to $98,000, Ethereum rises to $3,640! Bitfinex: BTC may reach $105,000 this month) (Background information: Bitcoin celebrates its 16th birthday: You should know that BTC has been in a 'national-level asset reserve competition' from its genesis block to 2025.) J.P. Morgan analysts noted that the price of gold has risen significantly over the past year, far exceeding the extent suggested by changes in the dollar and real bond yields. This may reflect the resurgence of 'devaluation trading', and the record capital inflows into the cryptocurrency market in 2024 indicate that Bitcoin is also becoming a more important part of investors' portfolios. Devaluation trading refers to a strategy where investors invest in assets such as gold and Bitcoin to hedge against the devaluation of fiat currencies, which is usually 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, and Bitcoin is also becoming an increasingly important part of investors' portfolios. With Trump's victory, J.P. Morgan analysts termed 2024 as the 'key year for the cryptocurrency market', estimating a record $78 billion entering the cryptocurrency market. This includes $27 billion in net inflows to crypto funds, $14 billion invested in CME futures, $14 billion raised by crypto venture funds, $22 billion of Bitcoin purchased by MicroStrategy, and $1 billion of Bitcoin bought by Bitcoin miners. This means that the Bitcoin purchases by MicroStrategy alone accounted for 28% of last year's record capital inflows into the cryptocurrency market. J.P. Morgan estimates that overall, as the structural positions of gold and Bitcoin improve, devaluation trading will continue to exist. Significant Drop in Exchange BTC Volume and Miner Outflows It is noteworthy that since November 2024, the inflow of Bitcoin to exchanges (the total amount of Bitcoin transferred to exchanges) and miner outflows (the amount of Bitcoin miners sent to exchanges) have significantly declined, indicating that selling pressure has eased considerably. According to CryptoQuant data, on November 25, 2024, the inflow of Bitcoin to exchanges reached a peak of 98,748 BTC. By December of last year, the inflow to exchanges decreased, but the daily inflow of Bitcoin to exchanges remained between 11,000 and 79,000 BTC. Meanwhile, on November 11 of last year, miner outflows peaked, with miners transferring 25,367 BTC to exchanges in a single day. However, by January 1, 2025, miners transferred 5,489 BTC to exchanges, which dropped to 5,748 BTC on January 2 and further down to 2,133 BTC on January 3. With selling pressure easing, Bitcoin is expected to continue its upward momentum. Bitfinex analysts stated today that Bitcoin is expected to climb to $105,000 in January, anticipating that by the end of January, Bitcoin will fluctuate between $95,000 and $110,000. Related Reports: U.S. Cryptocurrency Broker Rules 'Bring Down Bitcoin': A Bitter Pill or a Deadly Poison? Bridgewater Capital Founder Reveals: Senate Will Approve Bitcoin Reserve Plan! But the chance of acquiring 1 million coins is low. Morgan Stanley is rumored to open 'cryptocurrency trading', experts call for Bitcoin to surge to $200,000. "J.P. Morgan: 'Devaluation trading' is prevalent, Bitcoin becomes a more important investment! Last year, $78 billion flowed into the cryptocurrency market, setting a record" was first published in BlockTempo (the most influential blockchain news media).

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