JPMorgan: Bitcoin, Gold ETF Outflows Mean The Debasement Trade Is Cooling
JPMorgan (NYSE:JPM) analysts say simultaneous outflows from Bitcoin (CRYPTO: BTC) and gold ETFs over the past two weeks signal the debasement trade is cooling, not a rotation from Bitcoin into gold.
Iran-US Peace Hopes Pulling Money Out Of Both Assets
The debasement trade refers to buying Bitcoin and gold as hedges against geopolitical instability, currency weakness, and inflation.
JPMorgan managing director Nikolaos Panigirtzoglou wrote in a report that the outflows appear linked to growing hopes for an Iran-US deal rather than any shift in preference between the two assets.
Bitcoin ETFs saw larger outflows than gold ETFs over the two-week period, which JPMorgan says reflects Bitcoin’s role as one of the primary expressions of the debasement trade since the Iran conflict began.
The same cooling trend appeared in futures markets, …
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