Key Takeaways
- A Trump win could amplify retail demand for Bitcoin and gold.
- Spot Bitcoin ETF inflows reached $4.4 billion this October.
- Institutional trading in Bitcoin and gold futures has slowed recently.
With the 2024 U.S. election nearing, JPMorgan analysts suggest a Donald Trump win could further fuel Bitcoin’s price, driven by retail investors seeking alternatives to traditional assets.
In a recent report, managing director Nikolaos Panigirtzoglou and his team noted:
Retail investors appear to be embracing the ‘debasement trade’ by buying Bitcoin and gold ETFs.
Recent inflows
The recent spike in net inflows to spot Bitcoin ETFs supports this trend, with $1.3 billion added over just the last two days, raising October’s total to $4.4 billion.
This marks the third-highest month for Bitcoin ETF inflows since their debut in January, as retail investors look to assets they believe can preserve value amid currency debasement concerns.
Institutional investors
While retail investors are actively purchasing alternative assets, institutional investors have paused Bitcoin futures activity in recent weeks.
JPMorgan’s analysts explained that CME Bitcoin futures are “overbought,” which may expose the futures market to downside risk.
Gold ETFs are also drawing retail inflows, while institutional positions in gold futures have similarly stalled, underscoring retail dominance in the current market climate.
The analysts concluded that if a Trump win does boost retail buying in alternative assets, it could add significant upside for both Bitcoin and gold prices.
