JPMorgan Trumps Victory Spurs Bitcoin Surge Rally Expected to Continue Until 2025
The U.S. election has recently concluded, with Trump’s victory prompting various institutions to release analyses. JPMorgan analysts predict that this wave of the “Trump trade effect” will significantly boost Bitcoin, with this strong trend expected to continue until the end of 2024 and potentially extend into 2025.
Trump’s Victory Spurs Bitcoin Surge, Analysts Optimistic About Rally Continuing to 2025
JPMorgan analysts note that Trump’s repeated support for the development of the cryptocurrency industry brings policy advantages to cryptocurrencies like Bitcoin. The price of Bitcoin surged on the day of Trump’s victory, continuing to rise to a historic high of $76,000, with the potential to climb higher before the end of 2024, and possibly extending into 2025. As Trump implements policies in the future, both Bitcoin and safe-haven assets like gold are expected to benefit. Analysts state that such a “Trump trade” effect is similar to the market volatility seen when Trump took office in 2016.
Geopolitical Impact on “Debasement Trade,” Bitcoin and Gold May Both Benefit
Analysts point out that Trump previously stated during the election that he would impose tariffs on China and other trade partners to strengthen bargaining power. Now that Trump has won, such policies may further stimulate geopolitical risks and weaken fiat currencies, raising demand for safe havens and consequently driving the debasement trade of Bitcoin and gold. They further indicate that although Bitcoin has shown high correlation with Wall Street and tech stocks in recent years, its “anti-inflation characteristics” and “hedging aspects” remain valued by investors.
Federal Reserve Cuts Rates by 25 Basis Points: Bitcoin Hits New High
On November 8, the Federal Reserve announced a cut in interest rates by 25 basis points, bringing the target rate range to 4.5% to 4.75%, thereby maintaining the post-election rally. This marks the Fed’s second consecutive rate cut announcement. Bitcoin also surged to $76,000 last night, experiencing a slight pullback but remaining stable at $75,000.
(Federal Reserve cuts rates by 25 basis points, Powell says he will not resign, Bitcoin hits new high)
