PANews reported on January 5 that according to Theblock, JPMorgan analysts said that Bitcoin and gold are structurally becoming key components of investors' portfolios. "Over the past year, the rise in gold prices has far exceeded the trend suggested by changes in the US dollar and real bond yields, and is likely to reflect the re-emergence of this 'depreciation trade,'" JPMorgan analyst Nikolaos Panigirtzoglou wrote in a report. They also added that at the same time, record capital inflows into the crypto market in 2024 indicate that Bitcoin is also becoming a "more important component" of investors' portfolios.
A debasement trade is a strategy in which investors turn to assets such as gold and Bitcoin to hedge against the devaluation of fiat currencies, which is often driven by factors such as inflation, rising government debt and geopolitical instability.
Analysts said that the structural growth of gold in investor portfolios is evident from the amount of gold held by central banks and private investors. This includes physical gold, gold ETFs and other investment vehicles, which now account for a large portion of total assets held by non-bank investors worldwide.
Overall, analysts believe that the depreciation trade will continue as gold and Bitcoin continue to grow in structural importance. Last October, analysts were optimistic about the development of cryptocurrencies in 2025, citing factors such as depreciation trades and increasing institutional adoption.
