JPMorgan Identifies Cryptocurrency Growth Drivers for Year-End

The potential return of Donald Trump to the U.S. presidency and the need for a hedge against economic instability create favorable prospects for Bitcoin in 2025, according to JPMorgan, as reported by The Block.

Analysts suggest that amid rising geopolitical tensions and the upcoming U.S. elections, speculative institutional investors may consider gold and the leading cryptocurrency, but not Ethereum.

A potential Trump victory, besides supporting Bitcoin from a regulatory standpoint, is likely to increase turbulence due to plans for tariff hikes and increased government spending (“debt devaluation”), JPMorgan believes.

According to experts, stock and bond markets underestimate the prospect of the Republican candidate returning to the White House.

Other factors include:

• Statements by Morgan Stanley and other investment firms about being allowed to recommend spot Bitcoin ETFs to clients;
• The disappearance of pressure from the liquidations of Mt. Gox and Genesis, as well as coin sales by the German government;
• Payouts to FTX clients in fiat following the completion of bankruptcy proceedings.

Experts noted the growth of stablecoin capitalization to $180 billion, observed before the Terra/Luna collapse.

“Overall, we are optimistic about digital assets until 2025,” the review states.

Analysts maintain a conservative view on the medium-term outlook. They pointed out that the current price of the leading cryptocurrency still exceeds the average mining cost of $47,000 and the volatility-adjusted level compared to gold of $63,000.

Earlier, Bernstein linked Bitcoin’s rally to increased chances of a Trump victory.

Previously, BlackRock CEO Larry Fink expressed confidence in the price increase of the leading cryptocurrency.