JPMorgan: Bitcoin will benefit from Trump presidency and MicroStrategy plans "
On November 7, according to The Block, according to analysts at JPMorgan Chase, as Donald Trump wins the U.S. presidential election, gold and Bitcoin are expected to perform well, and they particularly emphasized the concept of "devaluation trading." A "devaluation trade" refers to an investment strategy that benefits from a devaluation or weakening of a currency, usually due to inflation or expansionary fiscal policies. In such transactions, investors buy assets such as gold and Bitcoin, which are seen as stores of value that retain the value of the currency even if its purchasing power declines. Analysts at JPMorgan pointed out that retail investors are also supporting gold and Bitcoin. Investment in gold and Bitcoin ETFs has increased since last summer, a trend that will continue into 2025, and Trump's policies may also support these two assets. In addition, analysts mentioned MicroStrategy's announcement of an aggressive Bitcoin acquisition plan through its "21/21 Plan", saying Bitcoin is expected to receive a further boost. The plan involves raising $42 billion over the next three years, half of which ($21 billion) will come from equity and the other half ($21 billion) will come from fixed-income securities. Analysts said that in 2025 alone, MicroStrategy will invest US$10 billion in Bitcoin, which is roughly equivalent to the total it has purchased since mid-2020.
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