USA election

Jp Morgan Chase analysts stated that with the possibility of Trump winning, the retail demand for bitcoin and gold may surge, despite institutional investors remaining cautious in overbought futures.

Are bitcoin and gold prices set to rise? Jp Morgan Chase weighs the potential driven by Trump.

Jp Morgan Chase analysts led by Managing Director Nikolaos Panigirtzoglou said in a report on Wednesday that a Donald Trump victory in the upcoming U.S. presidential election may increase retail interest in bitcoin and gold. They noted:

Retail investors seem to be embracing 'depreciating trades' more forcefully through buying bitcoin and gold ETFs.

They observed significant retail activity not only in bitcoin and gold exchange-traded funds (ETFs), but also in 'market cap superior to memes and artificial intelligence tokens.'

Analysts emphasize that inflows into bitcoin ETFs have significantly increased, with retail investors adding $1.3 billion in just two days, bringing the total for October to $4.4 billion—an all-time third-highest monthly inflow since January. Despite this rise, institutional investors remain more cautious. The analysts warn, 'Bitcoin BTC +0.39% futures are overbought, leading to some vulnerability in the future.' They point out a slowing institutional demand for bitcoin futures. Similarly, as retail investors actively purchase gold ETFs, institutional interest in gold futures has shown a noticeable pause.