Gold is rising, and so is Bitcoin. And both are poised to continue seeing gains in the weeks to come thanks to geopolitical uncertainty, worries over the strength of the dollar, and the upcoming U.S. election, according to JP Morgan analysts. 

In a Thursday report, analysts at the bank said that a “debasement trade” is coming—which could further drive demand for both gold and Bitcoin and help push up prices. A Donald Trump victory next week in the U.S. presidential election increases the likelihood of such a trade, JP Morgan analysts said.

A “debasement trade” is when traders try to hedge against weakening currencies, geopolitical headwinds, and government deficits. Gold is typically a good insurance policy against weakened fiat money; top asset manager BlackRock has also touted Bitcoin—so-called digital gold—as another asset to invest in during times of uncertainty. 

“Rising geopolitical tensions and the coming U.S. election are likely to reinforce what some investors call the ‘debasement trade’ thus favoring both gold and Bitcoin,” the report read.

Republican nominee Donald Trump not only has come out as the crypto-friendly candidate in the race, but his policy to increase tariffs could lead to more inflation and geopolitical tensions, the report noted. 

Ex-President Donald Trump used to be anti-crypto but has come out fiercely in favor of the industry this year.

The real estate mogul said he wants all future Bitcoin to be mined in the U.S. and also launched a decentralized finance (DeFi) project running on Ethereum that plans to release its own stablecoin, Decrypt previously reported. 

Gold has this year hit new highs and Bitcoin is now just 5% off touching its March all-time high. The biggest digital coin is trading for $70,114, CoinGecko data shows, after nearly setting a new all-time high on Tuesday. 

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