Weaker dollar fails to spur BTC price gains, here's the reason why from JPMorgan

Despite the Dollar Index dropping 10% over the past year, Bitcoin has failed to rally, losing 13% in the same period, unlike gold and other hard assets. Strategists at J.P. Morgan Private Bank attribute this divergence to the dollar's recent slide being driven by short-term flows and sentiment, rather than fundamental shifts in growth or monetary policy expectations. Because the underlying macro drivers are not seen as durable, the crypto market treats Bitcoin as a liquidity-sensitive risk asset rather than a traditional dollar hedge or store-of-value trade. J.P. Morgan suggests that assets like gold and emerging-market exposure are more direct beneficiaries of dollar diversification, concluding that Bitcoin may continue to lag until growth or rate dynamics replace sentiment as the primary driver of currency markets.

(Source：CoinDesk)