According to JPMorgan analysts, a win for the Republican US presidential candidate Donald Trump could further fuel Bitcoin (BTC) price momentum. Retail Investors Turn To Bitcoin For ‘Debasement Trade’ In a recent client note, analysts at JPMorgan suggested that a Trump win might provide ‘additional upside’ for both BTC and gold, as retail investors increasingly view Bitcoin as a ‘debasement trade.’ Related Reading: Bitcoin Makes ATH Against Euro Due To Change In Dollar Strength, Details Inside In simple terms, a debasement trade is a strategy to protect purchasing power against the steady erosion of fiat currencies due to extensive money printing. Notably, the M2 money supply – a measure of total money in circulation – sharply rose during the coronavirus pandemic. This surplus in money supply led to heightened inflation, forcing the U.S. Federal Reserve (Fed) to raise interest rates to contain it. By purchasing BTC, retail investors aim to maintain their money’s value, hoping Bitcoin will act as a hedge against currency depreciation. The JPMorgan note states: Retail investors appear to be embracing the ‘debasement trade’ in ..
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