JPMorgan bullish on cryptocurrency outlook through 2025

JPMorgan’s latest report projects a bullish outlook for digital assets through 2025, citing regulatory shifts and geopolitical factors as key drivers. 

According to the global investment bank, the potential re-election of Donald Trump as U.S. president could create favorable conditions for Bitcoin (CRYPTO:BTC), reinforcing what analysts refer to as the "debasement trade"—a strategy where investors turn to assets like Bitcoin and gold during times of economic instability. 

In their Alternative Investments Outlook and Strategy report, led by managing director Nikolaos Panigirtzoglou, JPMorgan’s analysts express confidence in the future of digital assets. 

"We are bullish on digital assets into 2025," the report noted, suggesting that the regulatory environment could shift positively, particularly with potential political changes. 

A primary reason for this optimism is the possibility of Trump’s return to office. 

The analysts argue that Trump’s policies could be more favorable for Bitcoin and other digital currencies, increasing demand for decentralised assets as a hedge against traditional economic risks. 

In addition to potential regulatory support, JPMorgan highlighted growing institutional interest as another factor bolstering the crypto market. 

For instance, Morgan Stanley has begun recommending Bitcoin exchange-traded funds (ETFs) to clients, signaling increased institutional backing. 

The report also noted that major liquidations, such as those related to Mt. Gox and Genesis, are largely behind, allowing the market to stabilise. 

While regulatory uncertainty remains, JPMorgan's outlook points to strong momentum for Bitcoin and stablecoins. 

The combination of geopolitical tensions, institutional support, and potential regulatory changes could maintain robust demand for digital assets into 2025.