JPMorgan explains why Bitcoin is not acting as a hedge to the falling US dollar, with both assets correcting over 10% in one year. The post Why Dropping US DollarJPMorgan explains why Bitcoin is not acting as a hedge to the falling US dollar, with both assets correcting over 10% in one year. The post Why Dropping US Dollar

Why Dropping US Dollar Index Isn’t Pumping Bitcoin Price, JPMorgan Explains

2 min read

Despite the US Dollar Index falling more than 10% over the past year, Bitcoin BTC $84 589 24h volatility: 5.6% Market cap: $1.69 T Vol. 24h: $58.75 B price has failed to show strength, leaving investors confused. On the other hand, a weakening dollar is pushing precious metals like gold and silver to fresh highs. JPMorgan strategists explain the reason why BTC is failing to catch up despite the USD weakness.

Why Bitcoin Price Underperformed Despite US Dollar Index Drop

Historically, BTC price usually moves in the opposite direction to the USD.

Explaining the linearity between USD and BTC over the past year, JPMorgan strategists noted that the weakness in USD is being driven largely by short-term flows and market sentiment, rather than a fundamental shift in US growth or monetary policy expectations.

They noted that US rate differentials continue to favor the dollar, suggesting the move may not be structural.

Furthermore, the bank noted that the US dollar weakness could be temporary, and any recovery in the US economy could lead to a surge in the dollar index. This is the reason why BTC hasn’t acted as a traditional hedge to the US dollar. Yuxuan Tang, JPMorgan Private Bank’s head of macro strategy in Asia, explained:

Gold Dominating BTC as Store of Value

With the gold price hitting $5,500 historic high amid the USD weakness, Bitcoin price has remained rangebound. This shows that BTC is trading more like a liquidity-sensitive risk asset instead of being a store of value.

Until currency markets are driven by growth and rate dynamics rather than by flows and sentiment, JPMorgan believes Bitcoin may continue to lag traditional macro hedges. The $1.8 billion outflows from US Bitcoin ETFs over the past week also show waning institutional confidence in BTC.

Bitcoin critic Peter Schiff said that digital gold Bitcoin is losing its shine over the yellow metal.

The latest Glassnode report said Bitcoin is consolidating amid subdued trading volumes. It added that the spot demand is showing little signs of recovery, while options are positioned on the bearish side.

Bitcoin long-term holder net position | Source: Glassnode

The on-chain analytics firm added that long-term holders have sold roughly 143,000 BTC over the past 30 days. This marks the fastest distribution since August 2025.

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The post Why Dropping US Dollar Index Isn’t Pumping Bitcoin Price, JPMorgan Explains appeared first on Coinspeaker.

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BitcoinWorld Crucial US Stock Market Update: What Wednesday’s Mixed Close Reveals The financial world often keeps us on our toes, and Wednesday was no exception. Investors watched closely as the US stock market concluded the day with a mixed performance across its major indexes. This snapshot offers a crucial glimpse into current investor sentiment and economic undercurrents, prompting many to ask: what exactly happened? Understanding the Latest US Stock Market Movements On Wednesday, the closing bell brought a varied picture for the US stock market. While some indexes celebrated gains, others registered slight declines, creating a truly mixed bag for investors. The Dow Jones Industrial Average showed resilience, climbing by a notable 0.57%. This positive movement suggests strength in some of the larger, more established companies. Conversely, the S&P 500, a broader benchmark often seen as a barometer for the overall market, experienced a modest dip of 0.1%. 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At the same time, concerns over inflation, interest rate policies by the Federal Reserve, or even global economic uncertainties could have pressured growth stocks, affecting the S&P 500 and Nasdaq. Key considerations often include: Economic Data: Recent reports on employment, manufacturing, or consumer spending can sway market sentiment. Corporate Announcements: Strong or weak earnings forecasts from influential companies can significantly impact their respective sectors. Interest Rate Expectations: The prospect of higher or lower interest rates directly influences borrowing costs for businesses and consumer spending, affecting future profitability. Geopolitical Events: Global tensions or trade policies can introduce uncertainty, causing investors to become more cautious. Understanding these underlying drivers is crucial for anyone trying to make sense of daily market fluctuations in the US stock market. Navigating Volatility in the US Stock Market A mixed close, while not a dramatic downturn, serves as a reminder that market volatility is a constant companion for investors. For those involved in the US stock market, particularly individuals managing their portfolios, these days underscore the importance of a well-thought-out strategy. It’s important not to react impulsively to daily movements. Instead, consider these actionable insights: Diversification: Spreading investments across different sectors and asset classes can help mitigate risk when one area underperforms. Long-Term Perspective: Focusing on long-term financial goals rather than short-term gains can help weather daily market swings. Stay Informed: Keeping abreast of economic news and company fundamentals provides context for market behavior. Consult Experts: Financial advisors can offer personalized guidance based on individual risk tolerance and objectives. 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