As geopolitical tensions and the impending U.S. presidential election stir market uncertainties, JPMorgan highlights a potential boost for both bitcoin and gold. According to their latest research, the ‘debasement trade’—favoring assets resistant to currency debasement—could strengthen, especially if Donald Trump secures the presidency. Trump’s approach, including tariffs and expansive fiscal policies, could significantly benefit bitcoin through both regulatory support and increased geopolitical strain.

The report outlines that the markets have yet to fully price in Trump’s potential re-election, with current investments leaning heavily towards traditional recession strategies rather than betting on a Trump win. However, JPMorgan recalls the economic shifts observed during the 2016 elections, where U.S. Treasury yields, the dollar, and domestic equities, particularly banks, saw notable gains. They suggest a similar trend could unfold, further energizing bitcoin and gold investments amidst a volatile political climate.