J.P. Morgan analysts believe that growing geopolitical tensions and the upcoming US presidential election are pushing investors to “debate trading” (a game of depreciation).

What is a debate trade?
This is a strategy for investing in assets that are expected to retain their value during periods of economic and political instability, when traditional currencies may depreciate (for example, bitcoin and gold).

J.P. Morgan’s arguments
– Rising gold prices: The price of gold has risen sharply in the last quarter, almost reaching $2,700 on September 26. Analysts note that this growth exceeds what could only be explained by the fall in the dollar and the decline in US Treasury yields.
– Factors contributing to “debasement trading”: Heightened geopolitical uncertainty, lingering inflation concerns, significant budget deficits in large economies, and declining confidence in fiat currencies.
– Bitcoin as “digital gold”: CryptoQuant analysts note that bitcoin, often called “digital gold,” may follow gold as Treasury yields decline.

Despite the decline in bond yields and the growth of the money supply, there is currently a negative correlation between bitcoin and gold. Bitcoin has not yet shown the same dynamics as gold.