JPMorgan: Trump's re-election could boost Bitcoin to new highs, momentum likely to continue until 2025

The U.S. election has recently come to a close, and with Trump's victory, various institutions have begun releasing their analyses. Analysts at J.P. Morgan have also predicted that the "Trump trade effect" will significantly boost Bitcoin's price, with the strong momentum expected to continue until the end of 2024 and potentially into 2025.

Trump's Victory Boosts Bitcoin Surge, Analysts Bullish on Momentum Continuing Until 2025

JPMorgan analysts pointed out that due to Trump's repeated support for the development of the cryptocurrency industry, it brought policy advantages for assets such as Bitcoin. Bitcoin surged in price on the day of Trump's victory, continuing to rise to a historic high of $76,000 and is likely to continue to rise until the end of 2024, possibly extending into 2025.

As Trump continues to implement policies, safe-haven assets such as Bitcoin and gold are benefiting. Analysts suggest that the "Trump trade" effect is similar to the market volatility caused by Trump's inauguration in 2016.

Geopolitical Influences on "Debasement Trade," Bitcoin and Gold May Benefit Simultaneously

Analysts pointed out that Trump previously stated during the election that he would impose tariffs on China and other trade partners to enhance negotiation leverage. Now that Trump has won, such policies may further stimulate geopolitical risks and weaken fiat currencies, leading to an increase in demand for safe-haven assets and driving the "debasement trade" of Bitcoin and gold.

They also mentioned that although Bitcoin has shown a high correlation with Wall Street and tech stocks in recent years, investors still value its "anti-inflationary nature" and "hedge aspects."

Fed Cuts Rates by One Point: Bitcoin Hits New High Again

On 11/8, the Federal Reserve announced a one-point rate cut, bringing the target range to 4.5% to 4.75%, sustaining the post-election rally. This marks the Fed's second consecutive rate cut announcement. Bitcoin also surged to $76,000 last night, experiencing some slight pullback but still holding steady at $75,000.

The Fed's one-point rate cut, Powell says he won't resign, Bitcoin hits new high again