JPMorgan Explains Why a Weaker US Dollar Isn't Boosting Bitcoin (BTC) Price

Analysts at JPMorgan Chase have provided insight into why Bitcoin's price has not rallied despite a recent decline in the US Dollar Index (DXY). Typically, a weaker dollar is seen as a potential catalyst for Bitcoin gains, as it enhances the appeal of alternative stores of value. However, JPMorgan strategists, led by Nikolaos Panigirtzoglou, point to subdued activity in the venture capital funding space for cryptocurrency startups as a key restraining factor. They note that VC funding into crypto projects remains significantly below the peak levels of 2021-2022. This lack of fresh capital inflows, according to the bank, is creating a headwind that offsets the positive effect of dollar weakness. The report suggests that for Bitcoin (BTC) to see a sustained upward move, a revival in venture capital investment may be necessary alongside favorable macroeconomic conditions. This analysis highlights the complex, multi-factor drivers of cryptocurrency valuations in the current market environment.