Donald Trump’s Impact on the Crypto Market
Donald Trump’s return to the White House created great excitement in the cryptocurrency world. Experts predict that Trump’s friendly approach towards cryptocurrencies will give positive momentum to the markets. In particular, JPMorgan analysts emphasize that Trump’s victory will have a positive impact on Bitcoin and gold prices.
JPMorgan’s Analysis
JPMorgan analysts state that the Trump era may trigger a new rising period for both Bitcoin and gold. Analysts predict that Bitcoin will experience significant price increases until 2025 after Trump comes to power. This prediction also had a positive impact on market sentiment. It is thought that Trump’s economic policies, especially the expansion of monetary policies, will support the depreciation trade.
Loss Trading and Cryptoassets
Depreciation trading can be defined as investors turning to stores of value such as gold and Bitcoin to protect against the decrease in the purchasing power of currencies as a result of inflationary policies. JPMorgan analysts emphasize that this trade will be strengthened by both geopolitical tensions and expansionary fiscal policies. Analysts expect gold and Bitcoin to rise together after Trump’s win.
The Future of Gold and Bitcoin Prices
Analysts believe that the speed at which central banks purchase gold will determine price fluctuations until 2025. It is observed that especially the Ukraine war and the sanctions against Russia increased the gold assets of central banks. The People’s Bank of China’s suspension of gold purchases may have different effects on the market. However, it is thought that ongoing geopolitical tensions will direct central banks away from dollar reserves and towards gold.
Investor Sentiment and ETFs
Recently, there seems to be increased interest in both gold and Bitcoin ETFs. This shows the faith of individual investors in cryptocurrencies and gold. Analysts predict that this trend will continue until 2025. Additionally, it is thought that Trump’s policies will support these two entities.
MicroStrategy’s Bitcoin Investment Plan
MicroStrategy’s $42 billion Bitcoin acquisition plan could have a significant impact on the cryptocurrency world. The company plans to obtain half of this capital from equity capital and the other half from fixed income securities in the next three years. Analysts state that for 2025, MicroStrategy will invest $10 billion in Bitcoin, and this amount is equivalent to the cumulative purchases they have made since mid-2020.
Conclusion and Predictions
As a result, Donald Trump’s return to the White House could herald significant changes in the cryptocurrency and gold markets. JPMorgan analysts predict that Trump’s policies will boost Bitcoin and gold prices by supporting a depreciation trade. Additionally, MicroStrategy’s large purchasing plans and central banks’ gold purchasing strategies seem to increase their influence on cryptocurrencies and precious metals.
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