JPMorgan Highlights Ongoing Demand for Gold and Bitcoin Amid Geopolitical Uncertainty

According to Odaily, JPMorgan has highlighted in a research report that the so-called 'devaluation trade' involving gold and Bitcoin is expected to persist as investors brace for ongoing geopolitical uncertainties. The bank noted that as investors increasingly seek tools to hedge against geopolitical risks and inflation, gold and Bitcoin have structurally become more significant components of investment portfolios. This trend is supported by record capital inflows into the cryptocurrency market in 2024. JPMorgan explained that the 'devaluation trade' refers to the growing demand for gold and Bitcoin driven by various factors, including structurally higher geopolitical uncertainty since 2022, ongoing uncertainty about long-term inflation prospects, and concerns over 'debt devaluation' due to persistently high government deficits in major economies.