Bitcoin And Gold May Gain From Geopolitical Tensions, US Election As Investors Brace For ”Catastrophic Scenario,” JPMorgan Says
Bitcoin and gold may benefit from geopolitical tensions and the upcoming US election as investors brace for a potentially ”catastrophic scenario,” JPMorgan said. The investment banking giant said in an Oct. 2 note that these developments would create the conditions for a so-called ”debasement trade” that could drive up demand for the safe-haven assets. A “debasement trade” is characterized by rising gold demand amid heightened geopolitical risks, uncertainty over long-term inflation rates, and persistently high government deficits in major economies, it said. Trump becoming president again “would likely reinforce the ‘debasement trade’ both via tariffs (geopolitical tensions) and via an expansionary fiscal policy (‘debt debasement’),” the JPMorgan analysts said. JPMorgan Says The Markets Have Not Priced In A Trump Victory Yet Markets have not yet priced in a Trump victory, mainly because traders have been too ...