JPMorgan: Inflation and geopolitical risks may long-term support gold and BTC demand

Golden Finance reported that JPMorgan pointed out in a research report that as investors prepare for ongoing geopolitical uncertainty, the so-called ‘devaluation trades’ into gold and BTC will ‘persist.’ The bank said that gold and BTC ‘seem to have become more important components of investors’ portfolios structurally’ as investors increasingly seek tools to hedge geopolitical risks and inflation, citing ‘record capital inflows into the cryptocurrency market in 2024’. JPMorgan said that ‘devaluation trades’ refer to the continuous increase in demand for gold and BTC due to various factors, including ‘higher structural geopolitical uncertainty since 2022, sustained high uncertainty about long-term inflation prospects, and concerns about ‘debt depreciation’ caused by the sustained high government deficits in major economies’.