JPMorgan: Demand for BTC, gold as inflation hedges is weakening

Demand for Bitcoin (BTC) and gold as inflation hedges is weakening, according to an analysis by JPMorgan reported by The Block. The analysis points to outflows from gold ETFs, expanding outflows from BTC spot ETFs for four consecutive weeks, and a continued reduction in BTC and gold positions by institutional investors in the futures market. JPMorgan stated that the buying pressure for both assets, which had been driven by geopolitical uncertainty, inflation, rising government debt, and concerns over the U.S. dollar's value, has weakened overall. The bank added, however, that a second-half rebound in the crypto market would require resolving uncertainties around dividend sources for companies holding digital assets and the passage of the U.S. CLARITY Act.