Bitcoin's Response to Weaker Dollar Analyzed by JPMorgan
Gold and other hard assets are rallying on dollar weakness, but bitcoin is lagging as markets continue to treat it as a liquidity-sensitive risk asset.
JPMorgan analysts have provided insights into the recent performance of bitcoin in response to a weaker dollar. Despite the surge in gold and other hard assets due to the weakened dollar, bitcoin has not experienced the same gains. The discrepancy in performance can be attributed to how markets view bitcoin as a liquidity-sensitive risk asset.
While traditional assets like gold are benefiting from the dollar's decline, bitcoin is seen as a risk asset that is not directly correlated with macroeconomic factors. This perception has resulted in bitcoin not following the same upward trend as other hard assets in the current market conditions.