JPMorgan analysts determined that the trend called “debasement trade” is permanent. Within the scope of this trend, gold and Bitcoin $97,667.7It was stated that it has become the basic components of investment portfolios.
Bitcoin and Gold
Debasement trading is a strategy of diving into assets like gold and Bitcoin against the depreciation of fiat currencies, taking into account factors such as an increase in government debt, geopolitical tensions and inflation fears. This strategy is attracting more attention as investors worry that inflation will increase again.
Developments in Cryptocurrency Markets
Analysts stated that gold prices have risen more than expected based on the movements of the dollar and bond yields in the last year. The report emphasized that, in addition to the revival of debasement trade, record capital inflows into the cryptocurrency markets in 2024 make Bitcoin an important asset in investor portfolios.
“The higher than expected rise in gold prices is an indication of the revival of the debasement trade,” said Nikolaos Panigirtzoglou, sharing his views as the lead analyst of the report.
Additionally, traditional financial institutions such as Morgan Stanley have allowed financial advisors to recommend Bitcoin ETFs to their clients, increasing interest in crypto markets. Analysts predict that the flow to the crypto sector will reach $ 78 billion in 2024, and most of it will be directed to Bitcoin investments.
MicroStrategy’s Bitcoin purchases contributed 28% to the total flow of crypto market entrants. Also, Mt. The completion of most liquidations of Gox and Genesis’ bankruptcies was considered a positive development for the market.
Analysts have noted that cash payments expected from the FTX bankruptcy could be redirected to cryptocurrency investments in late 2024 or early 2025.
These developments show that investors are diversifying their portfolios by turning to digital assets as well as traditional assets.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
