JPMorgan Sees Fading Appetite for Bitcoin and Gold as Inflation Hedges

JPMorgan says investor demand for Bitcoin (BTC) and gold as inflation hedges is losing steam, citing market data that point to easing buying pressure in both assets. The bank's analysis, reported by The Block, notes continued withdrawals from gold exchange-traded funds (ETFs). Bitcoin spot ETFs have also posted net outflows for four straight weeks. In derivatives markets, institutional participants have been cutting futures exposure to both BTC and gold, reinforcing the view that investors are stepping back from these perceived safe-haven trades. JPMorgan attributes the earlier upswing in interest to a mix of geopolitical risk, stubborn inflation, rising government debt, and concerns about U.S. dollar devaluation. It says the boost from those catalysts has now largely faded. For crypto, the bank cautions that a second-half rebound is not assured. It argues that a sustained recovery would require key uncertainties to be resolved, including clearer visibility into the sources of dividends for companies that hold digital assets on their balance sheets, as well as progress on U.S. regulation. JPMorgan specifically points to the proposed U.S. CLARITY Act, which aims to establish a more defined regulatory framework for cryptocurrencies. For investors, the report challenges the assumption that Bitcoin and gold will consistently function as reliable inflation hedges in the current environment. JPMorgan highlights institutional de-risking and persistent ETF outflows as signs that market expectations may be resetting. In the months ahead, it says attention should remain on ETF flow trends, institutional positioning, and developments around U.S. crypto legislation, including the CLARITY Act. Disclaimer: This information is not trading advice. Bitcoinworld.co.in accepts no liability for investments made based on this page. Investors are urged to conduct independent research and/or consult a qualified professional before making investment decisions.