Geopolitical uncertainties and the US election drive investors toward Bitcoin and gold.

JPMorgan analysts said in a report Thursday that escalating geopolitical tensions, along with

the forthcoming US election, are likely to drive investors to Bitcoin and gold.

JPMorgan refers to the "debasement trade," a tactic that capitalizes on uncertainty in traditional financial markets.

"Rising geopolitical tensions and the coming US election are likely to reinforce what some investors call the 'debasement trade' thus favoring both gold and bitcoin," the central bank stated.

Gold has already experienced a significant increase in value during the last quarter. By late September, it had exceeded $2,700, owing to a lower US currency and falling real bond yields.

While a weaker dollar, down by 4-5% during the same period, contributed to this increase, JPMorgan says that gold's price appreciation has "gone well beyond the moves implied by dollar and real bond yield shifts," implying that geopolitical fears are now a more dominant issue.

Bitcoin, which is also viewed as a hedge against traditional currency problems, is projected to benefit from these developments.

JPMorgan analysts argue that fears about "debt debasement" as a result of chronically rising government deficits in major economies are driving investors to seek alternatives to fiat currency.

According to the bank, the broader shift away from traditional currencies is most visible in certain emerging nations, where faith in fiat money has weakened.

According to JPMorgan, demand for gold and Bitcoin is anticipated to rise as investors seek hedges against "catastrophic scenarios," spurred by geopolitical uncertainty and economic instability.

According to JPMorgan, demand for gold and Bitcoin is anticipated to rise as investors seek hedges against "catastrophic scenarios," spurred by geopolitical uncertainty and economic instability.

With both assets positioned to benefit from this "debasement trade," JPMorgan believes they will continue to be appealing options for investors seeking market volatility protection.