JP Morgan and Standard Chartered bet on bitcoin's potential despite falls
In a recent report, JP Morgan analysts point out that the escalation of the conflict between Israel and Iran, as well as the US presidential elections, which will be held on November 5, will probably support a kind of 'weakening trade' that favors both bitcoin (BTC) and gold.
According to JP Morgan, a victory by Donald Trump and the Republican Party would not only boost bitcoin from a regulatory perspective, but would reinforce this trend through tariffs that raise trade tensions, as well as an expansionary fiscal policy. These analysts also point out that, in most other asset classes, the probability of a Trump victory is not discounted.
For their part, Standard Chartered analysts believe that investors would do well to buy the dips in bitcoin, since the queen cryptocurrency has the potential to revalue strongly in the coming weeks. According to these experts, bitcoin is not a hedge against geopolitical factors, as gold or Treasury bonds might be, but against "traditional financial issues, such as bank collapses."
