JPMorgan: Bitcoin is still considered a liquidity-sensitive risk asset and has not benefited from the weakening US dollar.

BlockBeats News, January 29, the US Dollar Index (DXY) has fallen 10% over the past year, but bitcoin has not risen as it usually does when the dollar weakens, instead dropping 13% over the same period. JPMorgan Private Bank strategists stated that the current dollar weakness is mainly driven by short-term capital flows and market sentiment, rather than changes in growth or monetary policy expectations. In fact, the US dollar interest rate differential has favored the dollar since the beginning of the year, which has caused bitcoin to fail to act as a typical hedge against the dollar.

JPMorgan analysts believe that since the market does not view the current dollar decline as a lasting macro shift, bitcoin is still regarded as a liquidity-sensitive risk asset rather than a reliable store of value. In contrast, gold and emerging market assets have become more direct beneficiaries of dollar diversification.