JPMorgan Forecasts Bitcoin Surge as Trump’s Economic Policies Fuel ‘Debasement Trade’

JPMorgan has forecasted a bullish outlook for Bitcoin extending through 2025, as the bank identifies Donald Trump’s recent victory in the U.S. presidential election as a factor likely to intensify both Bitcoin and gold investments. This sentiment aligns with the bank’s broader “debasement trade” strategy, which suggests a shift toward assets like gold and Bitcoin that hold value during periods of currency devaluation—typically prompted by inflation and debt expansion policies.

JPMorgan’s Managing Director Nikolaos Panigirtzoglou remarked that Trump’s policies may drive a greater focus on the debasement trade, citing tariffs, geopolitical tensions, and fiscal measures that raise national debt levels. He noted, “We do not see the initial negative market reaction by gold as a rejection of the ‘debasement trade’ under a Trump win. After all, Bitcoin, the other component of the ‘debasement trade,’ rallied after the Trump win.”

In fact, following the election, Bitcoin’s price climbed to a record high of $76,244 on Nov. 6, stabilizing at around $75,100 afterward.

Adding to the momentum, JPMorgan analysts highlight the role of MicroStrategy’s substantial Bitcoin investments under its “21/21 plan,” which seeks to invest $42 billion in Bitcoin over the next three years. In the report, JPMorgan notes, “For 2025 alone, MicroStrategy would be investing $10 billion into Bitcoin, which is roughly equal to its cumulative