{"id":1512128,"date":"2025-01-06T22:40:00","date_gmt":"2025-01-07T03:40:00","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1512128"},"modified":"2025-01-06T22:40:00","modified_gmt":"2025-01-07T03:40:00","slug":"debasement-trade-into-bitcoin-gold-is-here-to-stay-jpmorgan","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/debasement-trade-into-bitcoin-gold-is-here-to-stay-jpmorgan\/1512128\/","title":{"rendered":"“Debasement Trade” Into Bitcoin & Gold Is Here To Stay; JPMorgan"},"content":{"rendered":"

“Debasement Trade” Into Bitcoin & Gold Is Here To Stay; JPMorgan<\/span><\/p>\n

\n

Authored by Alex O’Donnell via CoinTelegraph.com,<\/em><\/a><\/p>\n

The so-called \u201cdebasement trade\u201d into gold and Bitcoin is \u201chere to stay\u201d <\/strong>as investors brace for persistent geopolitical uncertainty, according to a Jan. 3 research note by JPMorgan shared with Cointelegraph.<\/p>\n

<\/a><\/p>\n

Gold and BTC \u201cappear to have become more important components of investors\u2019 portfolios structurally\u201d as they increasingly seek to hedge against geopolitical risk and inflation<\/strong>, the bank said, citing the \u201crecord capital inflow into crypto markets in 2024.\u201d<\/strong><\/em><\/p>\n

<\/a><\/p>\n

Source: JPMorgan<\/em><\/p>\n

The debasement trade refers to increasing demand for gold and BTC due to factors ranging from \u201cstructurally higher geopolitical uncertainty since 2022, to persistent high uncertainty about the longer-term inflation backdrop, to concerns about \u2018debt debasement\u2019 due to persistently high government deficits across major economies,\u201d<\/strong> among others, JPMorgan said.<\/p>\n

<\/a><\/p>\n

Source: JPMorgan<\/em><\/p>\n

Institutional inflows<\/strong><\/h3>\n

Investment managers including Paul Tudor Jones are longing Bitcoin and other commodities on fears that \u201call roads lead to inflation<\/a>\u201d in the United States.<\/p>\n

US state governments are also adding Bitcoin as \u201ca hedge against fiscal uncertainty,\u201d <\/strong>asset manager VanEck\u00a0said<\/a>\u00a0in December.<\/p>\n

In October,\u00a0JPMorgan cited spiking open interest<\/a>\u00a0on BTC futures as another indicator that \u201cfunds might see gold and Bitcoin as similar assets.\u201d\u00a0<\/p>\n

In 2024, net open interest on BTC futures rose from approximately $18 billion in January to upward of $55 billion in December,\u00a0according<\/a>\u00a0to data from CoinGlass.<\/p>\n

<\/a><\/p>\n

Source:\u00a0<\/em>CoinGlass<\/em><\/a><\/p>\n

\u201cIn addition, the fact that Bitcoin [exchange-traded funds] started seeing inflows again in September after an outflow in August suggests that retail investors might also see gold and Bitcoin in a similar fashion,\u201d<\/strong><\/em> JPMorgan said in October.\u00a0<\/p>\n

In November, US Bitcoin ETFs\u00a0broke $100 billion in net assets<\/a>\u00a0for the first time, according to data from Bloomberg Intelligence.<\/p>\n

Crypto ETF inflows are among the\u00a0most important metrics to watch<\/a>\u00a0because they are \u201cmore likely than other trading activity to be new funds\/market participants entering the crypto space,\u201d according to a December report by Citi shared with Cointelegraph.<\/p>\n

Surging institutional inflows could cause positive \u201cdemand shocks<\/a>\u201d for Bitcoin, potentially sending BTC\u2019s price soaring in 2025,<\/strong> asset manager Sygnum Bank said in December.<\/p>\n

*\u00a0 *\u00a0 *<\/p>\n

[ZH: The structural rise of gold in investors\u2019 portfolios is best shown in the chart below, which proxies gold allocation globally via the stock of gold that is held for investment purposes by central banks or private investors holding gold via coins, bars or physical gold ETFs (or similar products) as % of the stock of equities, bonds and cash held by non-bank investors globally.<\/em><\/p>\n

<\/a><\/p>\n

Professional subscribers can read JPMorgan’s full note here…<\/em><\/a><\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nMon, 01\/06\/2025 – 17:40<\/span><\/p>\n

\u200bhttps:\/\/www.zerohedge.com\/crypto\/debasement-trade-bitcoin-gold-here-stay-jpmorgan<\/a>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

“Debasement Trade” Into Bitcoin & Gold Is Here To Stay; JPMorgan Authored by Alex O’Donnell via CoinTelegraph.com, The so-called \u201cdebasement trade\u201d into gold and Bitcoin…<\/p>\n","protected":false},"author":0,"featured_media":1512129,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[1],"tags":[],"class_list":["post-1512128","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","wpcat-1-id"],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/pbimBl-6lna","jetpack_featured_media_url":"https:\/\/bugaluu.com\/news\/wp-content\/uploads\/sites\/3\/2025\/01\/01943c78-0c52-707d-a893-bdc79752-Ft4ZQz.jpeg","_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1512128","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1512128"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1512128\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media\/1512129"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1512128"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1512128"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1512128"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}