A potential victory for Donald Trump in the upcoming U.S. elections on November 5 could bolster the upward momentum of the leading cryptocurrency’s price, reports The Block, citing opinions from JPMorgan analysts.
“Retail investors appear to be increasingly turning to risk-hedging strategies by purchasing bitcoin and gold ETFs,” noted the financial conglomerate’s experts.
According to them, a “retail impulse” is also evident among AI tokens and meme coins, with the market capitalization of coins in these segments “exceeding all expectations.”
On the other hand, analysts noted a slight decline in trading activity of bitcoin futures among institutional investors.
“Futures on the leading cryptocurrency have become quite overbought, which creates certain vulnerabilities in the future,” the experts emphasized.
Besides bitcoin ETFs, there is a steady inflow of funds into gold-based exchange-traded funds. This, experts are confident, is also driven by “retail demand,” while “institutional participation is on hold.”
“Overall, if Trump’s victory inspires retail investors not only to purchase risky assets but also to strengthen positions in strategies hedging against devaluation, it could create additional conditions for the price growth of bitcoin and gold,” the analysts concluded.
The former U.S. president is seeking to gain the support of crypto users in the upcoming elections. In July, he spoke at the annual Bitcoin 2024 conference in Nashville, promising to fire the head of the SEC, Gary Gensler, and create a strategic bitcoin reserve.
Earlier, JPMorgan analysts identified the main drivers of cryptocurrency growth for the rest of the year.