JPMorgan Chase: Bitcoin is not a reliable hedge against the US dollar; therefore, gold and emerging markets are more directly benefiting from dollar diversification.

JPMorgan strategists state the weakness of the US dollar is driven by short-term capital flows and market sentiment, rather than changes in economic growth or monetary policy expectations. They expect the dollar to stabilize as the US economy strengthens. Since the market does not view the current dollar decline as a lasting macroeconomic shift, Bitcoin trading behaves more like a liquidity-sensitive risk asset rather than a reliable dollar hedge. Therefore, gold and emerging markets become the preferred beneficiaries of dollar diversification.

JPMorgan Private Bank's framework also points out that assets such as gold and emerging market investments benefit more directly from dollar diversification than Bitcoin.