JPMorgan analysts have highlighted that rising geopolitical tensions and the upcoming U.S. election are steering investors toward Bitcoin and gold as safe-haven assets. This trend, referred to as the "debasement trade," reflects a growing concern over traditional currency risks amid economic instability.
Gold has surged recently, nearing $2,700 per ounce, driven by a weaker dollar and declining Treasury yields, while Bitcoin's performance has been more volatile, influenced by geopolitical events, particularly in the Middle East. As uncertainty looms, both assets are seen as viable hedges against potential market disruptions.
Investors are increasingly seeking alternatives to fiat currencies, making gold and Bitcoin attractive options during these turbulent times.
