U.S. bank JPMorgan Chase (JPM) says that geopolitical instability that includes an escalating war in the Middle East and a tense U.S. presidential election could boost the price of Bitcoin (BTC) heading into year’s end.
In a research report, JPMorgan said that the current geopolitical climate favors both Bitcoin and gold, which are viewed as safe haven assets in times of uncertainty.
JPMorgan sees a Donald Trump presidential win in November as being potentially good for Bitcoin and other cryptocurrencies.
In its report, JPMorgan says the return of the “Trump trade” could lead to higher U.S. Treasury yields, a stronger American dollar, stock market outperformance, and a boost to crypto prices.
JPMorgan noted that in the six months after the 2016 presidential election that Trump won, five-year Treasury yields rose 1%, the Dollar Index surged 8%, and U.S. equities gained 6%.
Additionally, a widening war in the Middle East and ongoing fighting in Ukraine could also help to drive capital into assets such as Bitcoin, noted JPMorgan.
Bitcoin is currently trading at $61,000 U.S., having risen 38% on the year.
