Geopolitical Tensions and U.S. Election Likely to Boost Bitcoin, Gold: JPMorgan

Last Updated on October 4, 2024

Efe Headshot
Written by
J.P. Morgan sign. Source: Eagle - stock.adobe.com

Key Takeaways:

  • Geopolitical tensions and the upcoming U.S. election could drive increased investment in both Bitcoin and gold, according to JPMorgan.
  • A Trump election victory may benefit Bitcoin, particularly due to favorable regulatory outcomes and expansionary fiscal policies leading to “debt debasement.”
  • Despite recession concerns, markets are beginning to show signs of pricing in potential shifts, with both Bitcoin and gold gaining attention.

JPMorgan’s recent report suggests that rising geopolitical tensions and the upcoming U.S. presidential election could bolster bitcoin and gold as part of the “debasement trade.”

The report highlights that a potential Donald Trump victory could enhance this trend through expansionary fiscal policies and increased tariffs, which may lead to “debt debasement.”

This scenario could benefit bitcoin, particularly from a regulatory standpoint.

While markets haven’t fully factored in a Trump win, early signs of this possibility are already visible in assets like gold and bitcoin.

JPMorgan notes that, in the 2016 election period, U.S. Treasury yields surged, the Dollar Index rose, and U.S. equities outperformed significantly.

However, recession fears remain the main focus for many investors.

In contrast, Standard Chartered’s separate report warns that bitcoin may not reliably serve as a safe-haven asset during times of geopolitical stress, suggesting its volatility could undermine its effectiveness in such situations.

About The Author

Efe Headshot
Written by

News Reporter

Efe Bravo, a seasoned journalist, delivers compelling insights into the cryptocurrency and blockchain industry.

His articles offer a deep dive into the latest trends, projects, and technological advancements shaping the future of digital finance.

Check Efe out on: