JPMorgan Chase analysts, led by Nikolaos Panigirtzoglou, report a continued retreat in fiat currency devaluation hedging trades, with Bitcoin experiencing an accelerated pace of outflows. In the week ending June 5th, gold ETFs saw outflows of approximately $20 billion, while Bitcoin ETFs have faced a gradual increase in outflows over the past month. This trend reflects a shift in investor behavior amid geopolitical uncertainty and inflation concerns.
The correlation between Bitcoin and the 10-year US Treasury real yield has turned negative, suggesting Bitcoin is behaving more like a risk asset. Similarly, gold's correlation with the S&P 500 has aligned more closely with Bitcoin's correlation to stocks. Analysts note that a stronger market in the second half of the year hinges on clear dividend plans from treasury companies and the passage of the Clarity Act, though its chances of passing are currently below 50%. Despite current market weaknesses, JPMorgan suggests this could be a contrarian bullish signal.
JPMorgan: Bitcoin Faces Accelerated Retreat in Fiat Devaluation Hedging
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