JPMorgan analysts reveal growing demand for safe-haven assets like Bitcoin and gold amid geopolitical uncertainty and inflation.
According to a JPMorgan report dated January 3 shared with some industry outlets, the “debasement trade”—investing in gold and Bitcoin as protection against fiat currency devaluation—is expected to strengthen over time. The American investment bank highlights how these two assets are taking on an increasingly significant role in traditional investor portfolios.
This trend is driven by multiple factors: rising geopolitical instability since 2022, concerns over long-term inflation, and worries about high public deficits in major global economies.
Data on capital flows in the digital asset market confirm this trend, with record-breaking levels reached in 2024. Particularly notable is the increased institutional interest: for instance, open interest in Bitcoin futures rose from $18 billion in January to over $55 billion in December.
Even some U.S. states have started considering Bitcoin as a hedge against fiscal uncertainty. According to data, Bitcoin spot ETFs surpassed $100 billion in assets under management (AUM) in November.
Swiss asset manager Sygnum Bank predicts that rising institutional inflows could create positive “demand shocks,” potentially driving Bitcoin prices higher in 2025. Meanwhile, U.S.-based Citibank notes that ETF flows are among the most significant indicators, as they primarily represent new capital entering the sector.
