Bitcoin is hitting new all time highs and JPMorgan analysts are calling it part of the "debasement trade," writing:
“The bank defines it as a trade that ‘reflects a combination of factors, which in our client conversations range from elevated geopolitical and policy uncertainty, to uncertainty about the longer-term
inflation backdrop, to concerns about ‘debt debasement’ due to persistently high government deficits across major economies, to concerns about Fed independence, to waning confidence in fiat currencies in certain emerging markets in particular, and to broader diversification away from the US dollar.”
So far this year Bitcoin and gold are the top performing major assets because it's becoming clear that the US is going to run
big deficits and drop interest rates to try and outgrow the debt.
The debasement trade is on. Buckle up.