The Breakdown Wall Street Discovers the “Debasement Trade”
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Oct 10, 2025 Bitcoin's recent surge is being linked to the so-called 'Debasement Trade,' with Wall Street now viewing it as a hedge against weakening currencies. Major economists are echoing long-held fears about deficits and declining faith in fiat. Japan's political shifts and rising yields add to the global landscape, while the IMF warns of potential debt crises. The rally of gold and Bitcoin reflects increasing investor concerns about currency decay, signaling a significant shift in market attitudes.
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Wall Street Adopts The Debasement Thesis
- Wall Street now frames concurrent gold gains, Bitcoin rallies, and a weaker dollar as the "debasement trade."
- JPMorgan links this to fears about deficits, Fed independence, and waning fiat confidence.
Crypto Community Feels Vindicated
- Bitcoiners reacted with amusement and validation when mainstream economists echoed long-held themes.
- Michael Saylor and Bitwise researchers highlighted that the narrative has been part of crypto circles for years.
Institutions Shift From Theory To Allocation
- Major banks like Deutsche Bank and JPMorgan are publicly urging clients to buy gold and Bitcoin as hedges.
- That marks a shift from theoretical endorsements to institutional allocation and client advice.