JPMorgan: "Devaluation trades" will continue to exist as the structural importance of Bitcoin and gold increases

ChainCatcher news, according to The Block, analysts at JPMorgan, led by Nikolaos Panigirtzoglou, stated in a report on Friday that "the appreciation of gold prices over the past year has far exceeded the trends implied by changes in the dollar and real bond yields, likely reflecting a resurgence of this 'devaluation trade.'"

They added that the record capital inflows into the cryptocurrency market in 2024 indicate that Bitcoin is also becoming "a more important component" of investors' portfolios.

The devaluation trade refers to a strategy where investors turn to assets like gold and Bitcoin to hedge against the devaluation of fiat currencies, which is often driven by factors such as inflation, increasing government debt, and geopolitical instability.