In a recent report, JPMorgan analysts indicated that Donald Trump’s victory in the U.S. presidential election may favor both Bitcoin and gold as part of what they call the "debasement trade." This investment strategy typically involves purchasing assets perceived as stores of value—such as gold and Bitcoin—when a currency is expected to weaken due to inflationary policies.

The report, led by managing director Nikolaos Panigirtzoglou, highlights that ongoing tariffs and geopolitical tensions could further reinforce this trade.

Analysts noted that despite an initial negative market reaction for gold following Trump’s win, Bitcoin experienced a significant surge, reaching an all-time high of $76,244 on Nov. 6. Currently, Bitcoin is trading at around $75,100.

JPMorgan analysts predict that the prices of both gold and Bitcoin will continue to rise, particularly as central banks reassess their reserves.

They pointed out that central bank purchases of gold increased notably after geopolitical tensions arose in Eastern Europe. Although the People's Bank of China paused its gold acquisitions last April, analysts expect ongoing geopolitical tensions to drive further diversification away from dollar reserves towards gold.

Additionally, the analysts emphasized the potential impact of MicroStrategy’s ambitious Bitcoin acquisition plan.

The company aims to raise $42 billion over the next three years, with $21 billion sourced from equity and an equal amount from fixed-income securities. For 2025 alone, MicroStrategy plans to invest $10 billion into Bitcoin, which is comparable to its total purchases since mid-2020.