A recent report by JPMorgan suggests that rising geopolitical tensions and the upcoming U.S. presidential election are pushing investors toward gold and Bitcoin in what is being called the “debasement trade.”
The “debasement trade” refers to a trend where investors seek safe-haven assets, like gold and Bitcoin, to protect against risks such as geopolitical instability, ongoing high inflation, and large government deficits in major economies.
According to the Oct. 3 report shared , these global factors are leading investors to brace for potentially severe financial scenarios. If former U.S. President Donald Trump wins the 2024 presidential election in November, this trend could grow even stronger, as concerns about economic uncertainty and global tensions continue to rise.
JPMorgan points to these factors as key drivers behind the increasing demand for assets like Bitcoin and gold, which are often seen as hedges against financial instability.
Summary Review: Rising geopolitical tensions and the uncertainty surrounding the upcoming U.S. presidential election are pushing investors toward safer assets like Bitcoin and gold. JPMorgan’s report highlights how this “debasement trade” is driven by concerns over long-term inflation, economic instability, and large government deficits. If Donald Trump wins the election, this trend could intensify as investors seek to protect their wealth in an increasingly uncertain global landscape.
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