JPMorgan: Weaker dollar fails to spur bitcoin gains, but there's a reason for that, JPMorgan says

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. What to know : Bitcoin has, unusually, not rallied alongside the slide in the U.S. dollar. JPMorgan strategists say the dollar’s weakness is being driven by short-term flows and sentiment, not changes in growth or monetary policy expectations, and they expect the currency to stabilize as the U.S. economy strengthens. Because markets do not view the current dollar decline as a lasting macro shift, bitcoin is trading more like a liquidity-sensitive risk asset than a reliable dollar hedge, leaving gold and emerging markets as the preferred beneficiaries of dollar diversification.