Gold surged up to pre-vaccine levels last night on the Dems win but has been monkeyhammered lower this morning...

And as PMs suffer, cryptos are surging higher with Ethereum now back above $1200...

Notably the ETF premia for Bitcoin and Ethereum (GBTC and ETHE) are diverging as the former is trading at an increasing premium while the latter's premium is compressing as spot catches up...

And, as JPMorgan previously noted, the 'structural' flow from gold to crypto continues...

JPMorgan's goalseeked conclusion is clear:

we believe that the valuation and position backdrop has become a lot more challenging for bitcoin at the beginning of the New Year. While we cannot exclude the possibility that the current speculative mania will propagate further pushing the bitcoin price up towards the consensus region of between $50k-$100k, we believe that such price levels would prove unsustainable.

In other words, bitcoin may well triple from here, but it could also drop.

Finally, we note that Rabo suggested this morning that cryptocurrency is an entirely *political* play. The market is suddenly full of naive neoclassical economists who can't model politics who are now embracing elements of Austrian economics without wanting to accept their whole intellectual package. Let's do the heavy lifting for them then:

if one believes Bitcoin is going to go soar, then one must also believe the entire fiat system, including US geopolitical hegemony, is going to ultimately collapse.