JPMorgan stated in a research report on Wednesday that geopolitical tension and the upcoming U.S. presidential election are likely to support the ‘debasement trade,’ favoring both bitcoin and gold. According to analysts, a Trump win would strengthen the ‘debasement trade’ through tariffs and an expansionary fiscal policy. If the “Trump trade” follows a similar pattern to 2016, there should be higher U.S. Treasury yields, a stronger dollar, U.S. stock market outperformance (especially banks), and tighter credit spreads. However, these market shifts have not yet occurred, with only a slight increase in these areas.
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