JPMorgan Analyzes Bitcoin's Lack of Rally Amid Weak Dollar

Bitcoin’s performance has remained below expectations amid a weakening US dollar, as analyzed by JPMorgan strategists. Yuxuan Tang, Head of Macro Strategy Asia, highlighted the effects not linked to growth or monetary policy shifts.

“It’s crucial to note that the recent dollar slide isn’t about shifts in growth or monetary policy expectations.” – Yuxuan Tang, Head of Macro Strategy in Asia, JPMorgan Private Bank, source

The analysis indicated that Bitcoin has struggled to benefit from the 10-11% decline in the yearly DXY. Traders perceive Bitcoin more as a liquidity-sensitive risk asset rather than a traditional store-of-value compared to gold.

The lackluster performance of Bitcoin influences both the broader cryptocurrency market and investor sentiment. The asset’s trading volume showcases a parallel decline, with muted movement expected in the short term. While gold experienced its ascent, Bitcoin failed to follow historic patterns, underperforming during this dollar weakness phase. Cryptocurrencies, in general, witness a 20% decline in 2025’s last quarter.

As Bitcoin remains stagnant, industry stakeholders analyze underlying factors including liquidity and speculation attributes affected by weak macroeconomic signals. Institutional participation appears unchanged. The potential for financial and regulatory changes remains speculative, as Bitcoin diverges from standard asset behaviors. The 10-year Treasury yields no longer predict the cryptocurrency’s trajectory as expected.