According to JPMorgan analysts led by managing director Nikolaos Panigirtzoglou, “Retail investors appear to be embracing the ‘debasement trade’ in an even stronger manner by buying Bitcoin and gold ETFs.”

hE also noted that this retail enthusiasm extends to meme and AI tokens, which have seen outperforming market caps.

Recent data highlights that Bitcoin has surged above $73,000, prompting significant inflows into U.S.-listed spot BTC exchange-traded funds (ETFs). Over the past week alone, these ETFs increased their combined assets under management by more than $2.27 billion according to Farside Investors.

This marks the third-largest month of inflows into Bitcoin ETFs since their inception in January. The increase is attributed largely to retail interest seeking alternative assets as protection against currency debasement.

However, institutional investors have largely refrained from participating in this rally. The analysts remarked that institutional players paused their activity with Bitcoin futures recently based on cumulative open interest changes within CME contracts adjusted daily.

“Bitcoin futures have become rather overbought,” they warned. “Creating some vulnerability going forward.”

JPMorgan’s report also observed continued inflows into gold ETFs driven primarily by retail investors amidst a decline in institutional engagement with gold futures trading.

“Overall,” they concluded, “to the extent a Trump win inspires retail investors to not only buy risk assets but also further embrace the ‘debasement trade’, there could be additional upside for Bitcoin and gold prices.”

While Trump’s potential re-election is perceived as generally positive for cryptocurrencies like Bitcoin, its impact on gold may be more muted according to David Morrison from Trade Nation.

“Gold should continue to do its own thing,” he stated regarding current market conditions.

Morrison elaborated further: “It is currently in a bull market and this is unlikely to change under either candidate.”

He emphasized factors such as lower interest rates and declining dollar values that can bolster gold prices while noting little influence either candidate might exert over Federal Reserve policies—even despite Trump’s comments advocating rate cuts during his tenure.

With Fed chair Jerome Powell maintaining his position without any immediate threat of dismissal—despite Trump’s previous attempts at pressure—Morrison highlighted underlying bullish fundamentals supporting bullion investments amid rising geopolitical tensions alongside central bank purchasing activities primarily from nations like China rather than traditional Western central banks such as those represented by Federal Reserve or ECB actions.

He cautioned about absent retail demand during recent rallies but suggested that igniting such demand could lead toward substantial price gains moving forward.

Nicky Shiels from MKS PAMP provided insights suggesting fluctuating dynamics surrounding future valuations: “Gold’s trajectory into yearend is quite binary and contingent on both election outcomes.”

“The case for Gold at $2500 or $3000 can be made,” she said regarding possible price movements influenced heavily through various economic scenarios unfolding post-election day along with domestic data releases impacting Fed outlooks significantly moving ahead.”

For practical investor strategies concerning precious metals given uncertainty ahead; Shiels advised caution while remaining engaged: “Stay lightly long…but keep dry powder ready.”

Article generated from corporate media reports.