JPMorgan Chase: "Devaluation trades" will continue to exist, as the structural importance of Bitcoin and gold continues to increase

In a report on Friday, analysts led by Nikolaos Panigirtzoglou at JPMorgan Chase stated that "the appreciation of gold over the past year has far exceeded what changes in the dollar and real bond yields would suggest, likely reflecting a resurgence of this 'devaluation trade'," They added that record capital inflows into the cryptocurrency market in 2024 indicate that Bitcoin is also becoming an "increasingly important part" of investors' portfolios. Devaluation trade refers to a strategy where investors turn to assets like gold and Bitcoin to hedge against currency devaluation, which is often driven by factors such as inflation, increased government debt, and geopolitical instability.