The cryptocurrency market has priced in the US Fed’s interest rate cut. While BTC surged above $60,000, altcoins saw significant gains. This upward trend was interrupted by rising tensions in the Middle East. Following Iran’s attack on Israel, the market collapsed.

With geopolitical tensions dominating the agenda, JPMorgan made some notable statements in its note to investors. The banking giant said that tensions would benefit Bitcoin and that the US election was not yet priced into the market.

JPMorgan's Striking Statement on Bitcoin

JPMorgan report says the final quarter will see an increase in the trend towards Bitcoin and gold. The report claims that Bitcoin will be preferred as a “store of value” tool.

In a note published Wednesday, it was stressed that markets have yet to price in the U.S. election. The election process is reportedly moving slowly due to geopolitical tensions.

In the report prepared under the leadership of Nikolaos Panigirtzoglou, the following were noted;

“In particular, Trump’s election seems to be beneficial for Bitcoin from a regulatory perspective. “It could also strengthen the ‘trade against depreciation’ strategy due to tariffs (geopolitical tensions) and expansionary fiscal policy.”

JPMorgan claims that the possibility of a Trump election is priced in relative to other asset classes besides gold and Bitcoin. Stating that concerns about a recession have constrained markets, the banking giant claims that the “Trump trade” strategy could be back in play. The strategy in question refers to the 2016 US election. In the six months following the 2016 US election, the dollar index rose 8%, while US stocks recorded a positive performance of 6%.

JPMorgan said and knew that a big drop would happen when BTC rose above $70k. BTC dropped to $52k after JPMorgan's bearish expectation.