As the U.S. election draws near, JPMorgan analysts anticipate a Donald Trump win could amplify bitcoin’s growth, attributed to a rising trend among retail investors towards the “debasement trade.” According to a report led by Nikolaos Panigirtzoglou, retail interest has not only pushed the purchase of bitcoin and gold ETFs but also favored meme and AI tokens, indicating a robust performance in market cap.

The last two days alone have seen a remarkable $1.3 billion influx into spot bitcoin ETFs, summing up to $4.4 billion in October, marking it as the third-largest month for inflows since their inception. This surge reflects a growing preference for alternative assets among retail investors, aiming to hedge against potential currency debasement. Meanwhile, institutional involvement in bitcoin futures has seen a slowdown, suggesting a momentary pause in their market activity.

Looking ahead, JPMorgan maintains a bullish outlook on the crypto market for 2025, fueled by ongoing trends and the possible electoral success of Donald Trump. This scenario could lead to significant gains for both bitcoin and gold, propelled by a sustained retail drive toward risk assets and the debasement trade.