JPMorgan believes that both gold and Bitcoin are set to see big increases in value throughout 2024 due to a mix of financial, technical, and political factors.
As of October 4, both assets have been performing well, with gold trading close to its all-time highs and Bitcoin showing strong year-to-date gains despite being below its peak.
Geopolitical events’ influence on gold and Bitcoin
Experts at JPMorgan suggest that both gold and Bitcoin will benefit from ongoing global and national events in the U.S., particularly high geopolitical tensions.
Gold has already demonstrated its status as a safe haven asset, experiencing a sharp increase in price following the Iranian missile strike on Israel on October 1.
The price of gold rose from about $2,628 on September 30 to around $2,670.
In contrast, Bitcoin faced a decline during this period, dropping from approximately $64,000 to below $61,000. For some, this raises questions about Bitcoin’s role as a safe haven investment during times of crisis.
Bitcoin is the most liquid
JPMorgan analyst Nikolaos Panigirtzoglou believes that domestic events could be more influential in driving up Bitcoin’s price than international crises related to conflicts in the Middle East or Ukraine.
He argues that markets haven’t yet factored in the possibility of a Trump victory in the upcoming November elections.
If Trump were to be re-elected, it could lead to a huge surge in Bitcoin’s price, given his popularity within the cryptocurrency community and his supportive stance toward Bitcoin.
JPMorgan also notes that gold and other assets could benefit from a Republican win, similar to what happened after the 2016 elections when there was a noticeable uptrend across various markets.
Risks means gold and Bitcoin gains?
The predictions are optimistic, but there is uncertainty surrounding both gold and Bitcoin.
Just as a Trump victory isn’t guaranteed, global events could disrupt any potential rally for these assets.
Bitcoin may be particularly vulnerable if it reacts negatively to major news events like it did after the October 1 Iranian missile strike on Israel on October 1.. Its next opportunity to solidify its reputation as a safe haven investment may come soon.
While gold seems like a safer choice for an immediate rally, its price has been near all-time highs for several months.
This raises concerns about how much more it can grow, even though many analysts predict it could reach $3,000 by late 2024 or early 2025.
