JPMorgan · Bitcoin · The Block
JPMorgan confirms debasement trade retreat has ‘accelerated’ for bitcoin
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Investors have continued to move away from the so-called debasement trade, with the retreat accelerating for bitcoin while continuing for gold, according to JPMorgan analysts.
Key facts
- After steadily rising since mid-2023, those allocations have fallen back to levels last seen in March 2025
- At the same time, gold's correlation with the S&P 500 has moved closer to bitcoin's traditionally positive relationship with equities, suggesting that both assets have recently behaved more like risk
- Investors have continued to move away from the so-called debasement trade, with the retreat accelerating for bitcoin while continuing for gold, according to JPMorgan analysts
- We see broad based retreat of the debasement trade by both retail and institutional investors," the analysts said
Summary
Gold exchange-traded funds saw around $20 billion of outflows in the week through June 5 after modest inflows the previous week, while bitcoin ETFs have recorded gradually increasing outflows over the past four weeks, JPMorgan analysts led by managing director Nikolaos Panigirtzoglou said in a report. "We see broad based retreat of the debasement trade by both retail and institutional investors," the analysts said. The debasement trade refers to investor demand for bitcoin and gold driven by concerns including geopolitical uncertainty, persistent inflation, rising government debt, weakening confidence in fiat currencies and diversification away from the U.S. dollar. JPMorgan's momentum indicators show a similar trend.