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JPMorgan: Bitcoin will benefit from Trump's presidency and MicroStrategy's BTC purchase plan
2024-11-07 10:01
Odaily News With Trump winning the U.S. presidential election, analysts at JPMorgan Chase expect both gold and Bitcoin to perform well, highlighting the "depreciation trade." A "depreciation trade" refers to an investment strategy that benefits from a depreciating or weakening currency, usually due to inflation or expansionary fiscal policy. In this trade, investors buy assets such as gold and Bitcoin, which are seen as stores of value and can maintain their value even if the purchasing power of the currency decreases. Analysts pointed out that retail investors are also supporting gold and Bitcoin, and investments in gold and Bitcoin ETFs have increased since last summer. They added that this trend will continue until 2025, and Trump's policies may support both assets. In addition to Trump's policies, analysts said that Bitcoin may also get a further boost from MicroStrategy. MicroStrategy has unveiled an aggressive Bitcoin acquisition plan through its "21/21 Plan." The plan involves raising $42 billion in funds over the next three years, half of which ($21 billion) will come from equity and the other half ($21 billion) will come from fixed income securities. "In 2025 alone, MicroStrategy will invest $10 billion in Bitcoin, which is roughly equal to the total amount it has accumulated since mid-2020," the analyst said. (The Block)