Trump's term

JPMorgan: Bitcoin will benefit from President Trump's term and MicroStrategy's plans

ChainCatcher news, according to The Block, based on the views of JPMorgan analysts, as Trump wins the U.S. presidential election, both gold and Bitcoin are expected to perform well. They specifically highlighted the concept of "devaluation trade." "Devaluation trade" refers to an investment strategy that benefits from currency devaluation or weakening, which is often caused by inflation or expansionary fiscal policies. In this trade, investors purchase assets like gold and Bitcoin, which are seen as stores of value, as they can maintain their worth even when the purchasing power of currency declines.JPMorgan analysts pointed out that retail investors are also supporting gold and Bitcoin, with investments in gold and Bitcoin ETFs increasing since last summer. This trend is expected to continue until 2025, and Trump's policies may also support these two assets. Additionally, the analysts mentioned a radical Bitcoin acquisition plan announced by MicroStrategy through its "21/21 plan," stating that Bitcoin is likely to receive further boosts.The plan involves raising $42 billion in funding over the next three years, with half ($21 billion) coming from equity and the other half ($21 billion) from fixed-income securities. Analysts noted that in 2025 alone, MicroStrategy will invest $10 billion in purchasing Bitcoin, which is roughly equivalent to the total amount it has accumulated since mid-2020.
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