JPMorgan Chase: Dollar weakness is driven by short-term sentiment; Bitcoin remains a risk asset.

PANews reported on January 29th that, according to CoinDesk, while the US Dollar Index (DXY) has fallen 10% over the past year and hard assets like gold have risen due to the weaker dollar, Bitcoin has underperformed, with its price dropping 13%. JP Morgan Private Bank believes that the current dollar weakness is primarily driven by short-term capital flows and market sentiment, rather than changes in economic growth or monetary policy expectations. Because the market does not view the dollar's decline as a lasting macroeconomic shift, Bitcoin remains seen as a liquidity-sensitive risk asset rather than a reliable dollar hedge. In contrast, gold and emerging market assets have become the preferred beneficiaries of dollar diversification.