📉 Investors are continuing to move away from "debasement trade," with the pullback accelerating for Bitcoin and extending to gold, according to analysts at
@jpmorgan.
According to the analysts, the debasement trade has been losing momentum across ETFs, futures markets, and broader investor positioning. The bank noted that gold ETFs recorded $20B in outflows last week. Meanwhile,
#Bitcoin ETFs have posted steadily increasing outflows over the past four weeks.
JPMorgan also pointed to changing market correlations. Bitcoin’s correlation with 10-year US real Treasury yields has recently turned negative, mirroring a similar shift previously observed in gold. This suggests that rising opportunity costs associated with holding non-yielding assets may be weighing on demand for both.
At the same time, gold’s correlation with the S&P 500 has moved closer to $BTC’s traditionally positive relationship with equities, indicating that both assets have recently traded more like risk assets than portfolio hedges or diversifiers.
Despite maintaining a cautious outlook on digital assets,
#JPMorgan said a stronger second half of the year could depend on DAT companies providing greater clarity on how they plan to meet dividend obligations, as well as progress on US
#crypto market structure legislation. Even so, the analysts noted that the current weak sentiment across the market could ultimately prove to be “a bullish contrarian signal going forward.”