JPMorgan Predicts Strong Growth for Digital Assets Into 2025
Table of Content
- JPMorgan’s Optimism for Digital Assets Into 2025
- Growth of the Debasement Trend Amid Geopolitical Conflict
- JPMorgan’s Analysis of Trump’s Regulatory Impact on Bitcoin
- JPMorgan’s Bullish Outlook on Digital Assets
Analyst at global investment bank JPMorgan have updated their view on the cryptocurrency market, expressing optimism for 2025. This projection, highlighted in their Alternative Investments Outlook and Strategy report, led by managing director Nikolaos Panigirtzoglou, which was released late Friday.
A key factor identified by JPMorgan’s analysts is the potential for former U.S. President Donald Trump, which could create a more favorable regulatory environment for bitcoin. This scenario may bolster the “debasement trade” where investors turn to assets like gold and bitcoin in times of economic instability, seeking to hedge against currency devaluation.
They explained on the growth of the debasement trend is already gaining momentum due to rising geopolitical conflict, and a Trump win could push it even further. His administration could introduce the tariffs and expansionary fiscal policies that would fuel this trend, driving more investors towards asset like bitcoin, Trump’s economic approach would likely to enhance the movement towards safe-haven asset as a hedge against instability.
They also noted that, across most asset classes outside of gold and bitcoin, currently seen as having “a very low probability” while trump victory.
JPMorgan’s analysts also highlighted recent shifts in traditional finance, noting that Morgan Stanley has started recommending bitcoin exchange-traded funds (ETFs) to its clients. They further emphasized that most of the major liquidations related to the Mt. Gox and Genesis bankruptcies, as well as the German government’s bitcoin sale, are largely concluded, reducing some of the market’s selling pressure.
The market cap of stablecoins has also made a strong recovery, its approaching previous high of around $180 billion, which was last seen before the Terra/Luna collapse. This rebound reflects growing confidence in the stability of these digital assets, analysts said.
The analysta noted that while the stablecoin market has expanded in dollar terms, this increase primarily mirrors to the overall rise in the crypto market cap. Despite this growth, stablecoins’ market share relative to the total crypto market has remained largely unchanged.
As for bitcoin’s current price is above $67,000, is well above JPMorgan’s estimated average production cost of $47,000. They also said that, based on its volatility-adjusted comparison with gold, bicoin’s value is estimated at $63,000- Just slightly below its current market price.
