The Drop in the Dollar (DXY) Didn’t Boost Bitcoin This Time! JPMorgan Explains Why!

While there are many reviews of Bitcoin’s poor performance, its failure to recover and the causes for it, the most recent analysis comes from JPMorgan.

But JPMorgan analysts said at this stage that “By the unusually, Bitcoin did not rise in parallel with the decline of the US dollar.”

This is because most market participants do not see Bitcoin as a hedge against dollar risk, analysts say.

analysts said that while gold and other precious metals are ‘increaving as the dollar weakens, Bitcoin is falling behind because markets still see it as a liquidity-sensitive, risky asset inflection of bitcoin.

In a statement to CoinDesk, JPMorgan’s head of Asia macro strategy, Yuxuan Tang said ‘A weak DXY is generally good for risky assets such as $BTC but this was the case here.

Since the DXY fell 10%, and Bitcoin dropped 13% because of this? In a statement, Tang said ‘This means the market sees $BTC as not ‘an accurate hedge against the dollar’ but “a liquidity-sensitive asset.” Paraphrast.

Also, Tang said that “a lot of investors looking to get away with the dollar” are pursuing assets such as gold or new market equivalents.

However, a consensus from JPMorgan analysts and Tang concluded that Bitcoin still functions as more like’liquidity-sensitive risk asset assets than default store of value’; “If there is no clear change in future monetary policy, it will be hard for Bitcoin to keep pace with the market rally.”

*This is not investment advice.

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