Trump won the 2024 US presidential election, not only winning the electoral college vote, but also the popular vote, and the crypto market is celebrating. Now, as expected, the US Federal Reserve (Fed) has cut interest rates by another notch, and the loose monetary policy has encouraged Bit to hit a new high again today, reaching as high as $76,848 at one point.
JP Morgan: Bit will continue to soar for 8 weeks
Wall Street giant JPMorgan Chase (JP Morgan) is optimistic about Bit's performance under Trump's administration. In a report on Thursday, the institution stated that Bit will continue to benefit from the Republican victory in the US presidential election, and its price will continue to soar for at least eight weeks.
We expect the Trump effect to continue to ferment for about the next eight weeks, just as it did in 2016.
Looking back at history, Bit's performance in November and December of the last two election years was:
- 2020: up 42.95% in November, up 46.92% in December
- 2016: up 5.42% in November, up 30.8% in December
It can be seen that Bit has risen in the two election years after, and it is often the month with the highest annual increase! JP Morgan is optimistic that Bit's performance this year will be the same, soaring at least until the end of the year.
Trump's two major policies support Bit
In addition, the report supplemented that although Bit prices soared and gold prices fell after Trump's victory, his policies are expected to support the performance of both until 2025.
JP Morgan's analysts said in last week's report that Bit and gold may benefit from "devaluation trades", a strategy commonly used to hedge against currency devaluation and geopolitical risks. The report pointed out that Trump's victory could further drive such trades, as he advocates imposing tariffs and geopolitical conflicts may escalate. Based on Trump's policy statements and written statements over the past year or more, he has proposed imposing 10% to 20% tariffs on imported goods, and in some speeches even mentioned higher tax rates, especially targeting China.
Further reading: JPMorgan warns: Trump's victory = inflation storm returns, the Fed may pause rate cuts in December
If the US imposes tariffs on imported goods, it will increase the cost of imported goods, and companies may pass on this cost to consumers, leading to price increases and exacerbating inflationary pressures. JP Morgan believes that Bit is a tool to hedge against inflation.
JP Morgan concluded that Trump's repeated statements supporting the digital asset industry and raising tariffs could ultimately benefit Bit.
Trump's crypto currency promises
Trump will be sworn in as President of the United States on January 20 next year, and the Republican Party has already taken control of the Senate. Although the House of Representatives election is not yet settled, the Republicans are currently in the lead, and if they successfully take the House, it will form a full ruling situation.
This will be conducive to Trump fulfilling the crypto currency promises he made during the campaign, including firing the US SEC chairman Gary Gensler, incorporating Bit into the national strategic reserve, and making the US a Bit superpower, as summarized in the figure below. Over the next 4 years, we can jointly monitor and witness whether Trump will keep his promises.
Further reading: Inventory of Trump's "full support for crypto currency" positive promises: BTC strategic reserve, fire SEC chairman, no CBDC
