Bitcoin saw a significant surge after Donald Trump’s election, reaching record highs of $76,200, with analysts predicting further gains ahead. JP Morgan analysts expect Bitcoin and gold to perform well under Trump’s administration. They predict better strategies and policies to expand inflationary assets and improve investor faith.
Crypto analyst Nikolaos Panigirtzoglou at JP Morgan highlighted a “depreciation trading” strategy that might be suitable for getting exposure to gold and Bitcoin. This strategy uses the currency devaluation trends to benefit assets perceived as stable stores of value. With the continued marketing strategies promoting inflationary leverage, BTC and gold are projected to gain traction as secure investments in uncertain economic conditions.
Retail investors have increasingly favored gold and Bitcoin over the past year, including inflows of retail investors into related ETFs. JP Morgan projects that this trend will persist through 2025, further encouraged by Trump’s policies. Analysts point to the resilience of these assets amid geopolitical volatility, which continues to steer investors toward safe-haven assets.
MicroStrategy’s 21/21 Plan Spurs Bitcoin Bullish Momentum
MicroStrategy has revealed plans to raise $42 billion over three years to purchase more BTCs. President Phong Lee prescribed the strategy referred to as the “21/21 Plan,” which consists of raising $21 billion from equity and $21 billion from fixed-income securities. MicroStrategy wants to increase its BTC holdings as a treasury reserve asset, enhancing BTC yield and shareholders.
Analysts highlight that Trump’s policies and MicroStrategy’s aggressive BTC acquisitions will likely sustain Bitcoin’s bullish momentum. Though JP Morgan analysts remain optimistic, they haven’t provided a specific price target for 2025, yet sentiment leans bullish as Bitcoin’s adoption and institutional support continue to grow.
Central bank activity will also influence gold prices through 2025 as these institutions ramp up gold reserves amid global economic shifts. Central banks accelerated gold purchases in 2022 following the Ukraine conflict and sanctions against Russia. China’s central bank, however, paused gold purchases in April, though ongoing trade tensions may soon prompt renewed acquisitions.
With escalating geopolitical tensions, central banks may reduce dollar reliance in favour of assets like gold. Retail and institutional investments in gold and Bitcoin ETFs reflect sustained confidence in these assets as hedges against uncertainty, and analysts expect this trend to extend, bolstered by pro-crypto policies and strategic acquisitions from prominent players like MicroStrategy.
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