ChainCatcher news, according to CoinDesk, although the US Dollar Index (DXY) has fallen 10% over the past year, Bitcoin has not risen as usual with the weakening US dollar, but has fallen 13%. JPMorgan Private Banking strategists explained that the current weakening of the US dollar is mainly driven by short-term capital flows and market sentiment, rather than changes in growth or monetary policy expectations. The dollar interest rate differential has actually favored the dollar since the beginning of the year, which has caused Bitcoin to fail to behave as a typical dollar hedge.
Analysts believe that since the market does not see the current decline in the dollar as a lasting macro shift, Bitcoin is still seen as a liquidity-sensitive risk asset rather than a reliable store of value. In contrast, gold and emerging market assets emerged as more direct beneficiaries of dollar diversification.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
USD/JPY Hits 160 Again – Is a Bitcoin Crash Coming Next?
_USD/JPY crosses 160 for the first time since July 2024, raising attention from global investors._
_July 2024 BOJ intervention dropped USD/JPY 20 points, Bitcoin 30%, and S&P 500 10%._
_Strengthening yen raises borrowing costs for leveraged investors, affecting stocks and crypto
LiveBTCNews42m ago
The cryptocurrency fear index has dropped to 9, with the market continuing to maintain "extreme fear."
The current cryptocurrency market fear and greed index has dropped to 9, indicating extreme fear in the market, well below yesterday's 12 and last month's average of 13. This index consolidates multiple indicators to assess market sentiment.
BlockBeatNews1h ago
Bitcoin Sell-Off Reveals Whale-Driven Rotation as Retail Capitulates and Leverage Resets
_Whales drove the sell-off, absorbed liquidity, while retail exited and leverage flushed across the market._
Bitcoin’s recent price action points to a calculated liquidity event rather than broad market weakness. A sharp decline initially appeared tied to macro uncertainty, but the underlying
LiveBTCNews2h ago
CEO of Goldman Sachs admits to holding Bitcoin amid accelerating institutionalization
David Solomon, CEO of Goldman Sachs, acknowledged holding a small amount of Bitcoin in February 2026, contrasting with his 2024 stance of viewing it as speculative. This reflects Wall Street's deepening involvement in crypto, amid legal constraints. The positive community reaction suggests a normalization of Bitcoin among affluent individual and institutional investors.
TapChiBitcoin2h ago
