Bitcoin and Gold to Surge as Trump Wins Presidency and MicroStrategy Plans Major Acquisition: Insights from JPMorgan

JPMorgan analysts predict that Donald Trump’s recent presidential victory will bolster gold and bitcoin, as economic policies and geopolitical tensions prompt investors to seek safer assets. Additionally, bitcoin’s trajectory is set for a further boost through MicroStrategy's ambitious $42 billion bitcoin acquisition plan.

The “Debasement Trade” and Its Impact on Bitcoin and Gold

The “debasement trade” is a strategy where investors turn to assets like gold and bitcoin to protect against currency devaluation, often driven by inflation or expansionary fiscal policies. JPMorgan analysts, led by managing director Nikolaos Panigirtzoglou, believe that this approach will strengthen amid tariffs, fiscal expansion, and geopolitical uncertainties.

Quote from Analysts: “The debasement trade is likely to be reinforced by both tariffs and geopolitical tensions as well as an expansionary fiscal policy (‘debt debasement’),” wrote Panigirtzoglou. Notably, bitcoin responded positively to Trump’s election victory, aligning with expectations of a “debasement trade” boost.

Bitcoin Hits Record High Amid Growing Investor Interest

Following Trump’s win, bitcoin surged to a new all-time high of $76,244, with current prices around $75,100. Although Panigirtzoglou avoided setting a specific price target for 2025, he noted a positive outlook for bitcoin heading into next year, citing rising interest among retail investors and institutional stakeholders.

Gold Demand Expected to Climb with Central Bank Activity

The analysts highlighted that central banks' actions will play a significant role in gold’s price movement. In 2022, central banks, particularly from countries affected by the Ukraine conflict and sanctions, significantly increased gold reserves. While China's central bank paused purchases in April, analysts predict continued diversification from dollar reserves into gold amid ongoing tariffs and global tensions.

MicroStrategy’s $42 Billion Bitcoin Acquisition Plan

MicroStrategy is further amplifying bitcoin’s outlook through its aggressive 21/21 plan, aiming to secure $42 billion in bitcoin by 2027. The company plans to split this capital raise evenly between equity and fixed-income securities, with a substantial $10 billion invested in bitcoin for 2025 alone—equivalent to its cumulative purchases since 2020.

Retail Investors Add Momentum to Gold and Bitcoin Growth

Retail investors have shown rising interest in gold and bitcoin, with significant investments in gold and bitcoin ETFs since mid-2023. JPMorgan analysts expect this trend to continue into 2025, partly fueled by Trump’s policy direction, which may encourage further capital inflow into both assets.

Conclusion

As Donald Trump’s presidency ushers in a favorable climate for the “debasement trade,” both gold and bitcoin are set to benefit from increased demand among institutional and retail investors. MicroStrategy’s substantial bitcoin acquisition plan adds further momentum, solidifying bitcoin’s role as a preferred asset for those hedging against currency devaluation. For investors, gold and bitcoin remain strategic options in an era marked by fiscal expansion and geopolitical complexities.