TechFlow news: On January 29, according to CoinDesk, despite the U.S. Dollar Index (DXY) falling 10% over the past year, Bitcoin did not rise—as it typically does when the dollar weakens—but instead declined by 13%. Strategists at J.P. Morgan Private Bank explained that the current dollar weakness is primarily driven by short-term capital flows and market sentiment, rather than shifts in growth or monetary policy expectations. In fact, the U.S. dollar interest rate differential has favored the dollar since the start of the year, preventing Bitcoin from behaving as a typical hedge against the dollar.
Analysts believe that, because markets do not view the current dollar decline as a lasting macroeconomic shift, Bitcoin remains classified as a liquidity-sensitive risk asset—not a reliable store of value. In contrast, gold and emerging-market assets have become more direct beneficiaries of dollar diversification.
