JPMorgan Chase: Inflation and geopolitical risks may support long-term demand for gold and Bitcoin

In a research report, JPMorgan pointed out that the so-called "devaluation trades" pouring into gold and Bitcoin will "continue to exist" as investors prepare for ongoing geopolitical uncertainty. The bank stated that due to investors increasingly seeking tools to hedge against geopolitical risks and inflation, gold and Bitcoin "seem to have structurally become more important components in investor portfolios," citing the "record capital inflows into the cryptocurrency market in 2024." JPMorgan said that "devaluation trades" refer to the growing demand for gold and Bitcoin caused by various factors, including "higher structural geopolitical uncertainty since 2022, persistent high uncertainty about long-term inflation prospects, and concerns about 'debt devaluation' caused by persistently high government deficits in major economies."