In a recent research report, JPMorgan analysts highlighted how rising geopolitical tensions and the upcoming U.S. election could support both bitcoin and gold in what is termed the 'debasement trade'.

• JPMorgan's Insights: The firm noted that a potential win for Donald Trump might reinforce the debasement trade due to both tariffs and expansionary fiscal policies.
• Market Expectations: Currently, markets have not fully accounted for a Trump victory, with the likelihood priced relatively low when observed across various asset classes apart from gold and bitcoin. Investors seem preoccupied with the recession narrative.
• Comparative Analysis: Historical data surrounding the 2016 election showed marked increases in U.S. Treasury yields, stock market performance, and tighter credit spreads as the 'Trump trade' unfolded.

"A Trump win in particular, aside from being supportive of bitcoin from a regulatory standpoint, would likely bolster the 'debasement trade' due to geopolitical tensions and fiscal expansion," analysts, led by Nikolaos Panigirtzoglou, stated. Translation: A Trump win would likely strengthen the 'debasement trade' due to geopolitical issues and government spending strategies.