JPMorgan: Dollar weakness to benefit gold and emerging markets more than Bitcoin

An analysis suggests that Bitcoin (BTC) is unlikely to be a direct beneficiary of a weaker U.S. dollar.

According to CoinDesk on the 29th (local time), global investment bank (IB) JPMorgan said in an investment memo that “it is important to note that the recent dollar weakness is unrelated to changes in expectations for (economic) growth or monetary policy.” JPMorgan added that “short-term flows and investor sentiment are driving dollar selling,” and that “the (dollar) weakness will ultimately prove temporary, as it was last year.”

JPMorgan assessed that Bitcoin is unlikely to benefit from dollar weakness. CoinDesk reported that “it has been shown that dollar weakness alone is not sufficient to draw fresh capital into the crypto market unless expectations for monetary policy shift materially,” adding that “JPMorgan pointed out that gold and emerging-market investments, rather than Bitcoin, could be the direct beneficiaries of dollar-diversification trades.”

Meanwhile, as of 6:13 p.m. today, Bitcoin is trading at $87,879.68 on CoinMarketCap, down 1.1% from the previous day. That is a 2.32% decline compared with a week ago.