JPMorgan: Debasement Trade Fading as Inflation Fears Cool!

JPMorgan is calling time on the so-called debasement trade, warning that simultaneous outflows from bitcoin and gold ETFs — alongside reduced institutional futures exposure on CME — signal a broad retreat from the macro hedges that dominated earlier this year. Analyst Nikolaos Panigirtzoglou noted the move does not reflect a rotation from BTC into gold, but rather softening demand for both at once.

The bank's report ties the shift to growing investor expectations of a U.S.-Iran diplomatic agreement, which would reduce the geopolitical premium that had been baked into both assets. Bitcoin had been the primary vehicle for the debasement trade since the Iran conflict escalated, the report said, while gold's rally followed months later.