Bitcoin ‘debasement trade’ is here to stay: JPMorgan
JPMorgan's recent research indicates that Bitcoin has become a fundamental part of investor portfolios as a hedge against continuing geopolitical uncertainties. Cointelegraph reported that investors are increasingly turning to the ‘debasement trade’, which elevates the demand for gold and Bitcoin due to several factors such as heightened geopolitical risks since 2022, persistent inflation concerns, and fears of government debt debasement. The bank noted a record in capital inflow into crypto markets throughout 2024. Influential figures like Paul Tudor Jones and some US state governments are also investing in Bitcoin as protection against economic instability. Additionally, there has been a significant rise in net open interest on Bitcoin futures, suggesting that institutional interest in BTC is growing. Many analysts foresee that this inflow of institutional capital could positively impact Bitcoin's price, potentially driving it higher in 2025.
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