Geopolitical risk fueled by conflict in the Middle East and the upcoming U.S. election are likely to reinforce the debasement trade, to the benefit of both bitcoin and gold, the report said.

But gold has recently being recording record highs. Strategists at JPMorgan led by Nikolaos Panigirtzoglou say gold has gone well beyond moves implied by dollar and real bond yield shifts. Instead, it has been driven by what’s called the debasement trade.

Investors are increasingly turning to gold and Bitcoin in what is being termed a “debasement trade,” as they brace for a potential “catastrophic scenario” amid rising geopolitical tensions. This insight comes from an October 3 report by JPMorgan,

Rising geopolitical tensions and the U.S. election are reinforcing a “debasement trade” and favoring both gold (XAUUSD:CUR) and Bitcoin (BTC-USD). Recent geopolitical conflict has shifted attention to alternative asset classes or hedges,