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What's going on, guys? It is Friday, October 4th, and today we are discussing what J.P. Morgan says about Bitcoin as a safe haven.

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All right, friends, happy Friday. I'm traveling today, so we are not doing our normal Friday 5. Instead, I am talking about some interesting recent comments from J.P. Morgan. Basically,

with geopolitical risk on the rise, JPM thinks investors will flock back to Bitcoin. On Thursday, JPMorgan analysts covering

global market strategies said in a note, rising geopolitical tensions in the coming U.S. election

are likely to reinforce what some investors call the debasement trade, thus favoring both gold

and Bitcoin. So there were a few really interesting things going on with this call. First,

it flies in the face of

short-term market action. On Tuesday night, as the rocket started flying in the Middle East,

Bitcoin plunged while gold soared. The analysts are saying that both assets are part of the

same trade, or at least that their client should start thinking of gold and Bitcoin is having

a lot of similarities. They even called out the idea that gold was getting a little ahead of itself,

adding, this increase in gold prices is influenced by a 4 to 5% decline in the dollar, and a significant drop in real U.S. treasury yields by 50 to 80 basis points. However, the appreciation of gold

has exceeded what these factors alone would suggest, indicating a reemergence of the debasement

trade. The nob was essentially calling out that, over the medium and long term, Bitcoin will be driven

by the same underlying factors that are driving gold higher, alongside geopolitical risk,

analysts referenced ongoing inflation concerns, soaring government deficits around the world,

and awaining confidence in fiat currencies.

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