JPMorgan: Investors Could Turn to Bitcoin Due to Geopolitical Risks

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JPMorgan analysts suggest that recent increases in geopolitical tensions and the looming US presidential election are causing investors to turn towards gold and Bitcoin as safe-haven assets, referred to as the “debasement trade.”

In a note on Thursday, analysts Nikolaos Panigirtzoglou, Mika Inkinen, Mayur Yeole, and Krutik P Mehta state that this trade is favoring both gold and Bitcoin.

Although gold initially had a muted response to recent geopolitical events, its price has significantly risen over the past quarter, approaching $2,700 on September 26.

The analysts attribute this price increase to a 4-5% decrease in the value of the dollar and a substantial drop in real US Treasury yields of 50-80 basis points.

However, they note that the rise in gold prices has exceeded what these factors alone would suggest, indicating a resurgence of the “debasement trade.”