JPMorgan analysts emphasize that the “debasement trade”—using assets like gold and bitcoin to hedge against currency devaluation—is becoming a long-term strategy for investors. Rising concerns over inflation, government debt, and geopolitical instability have made both assets gain structural importance in portfolios.
Gold‘s value has risen beyond traditional drivers like dollar strength and bond yields, with increased demand from central banks and private investors through physical gold, ETFs, and other vehicles.
Bitcoin also saw record inflows in 2024, with a net $78 billion entering the crypto market. Key contributors include $27 billion in crypto funds, $14 billion in CME bitcoin futures, $14 billion raised by crypto VC funds, $22 billion from MicroStrategy purchases, and $1 billion from miners.
Analysts highlight that Bitcoin and gold are becoming core assets in investor portfolios. “Debasement trade,” driven by concerns over inflation and fiat currency devaluation, is expected to remain a long-term strategy for preserving wealth.
Notably, MicroStrategy’s bitcoin purchases accounted for 28% of the year’s total crypto inflows, reflecting the growing role of corporate investments.
JPMorgan believes that gold and bitcoin will continue to serve as core assets for long-term wealth preservation, with institutional adoption and debasement hedges driving future growth in 2025 and beyond.
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