JPMorgan Analysts Warn of Cooling Debasement Trade Amid Bitcoin and Gold ETF Outflows
JPMorgan: Bitcoin, Gold ETF Outflows Mean The Debasement Trade Is Cooling

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JPMorgan analysts indicate that recent outflows from Bitcoin and gold ETFs suggest a cooling of the debasement trade, primarily linked to hopes for a US-Iran peace deal. Bitcoin experienced larger outflows than gold, reflecting its role as a hedge against geopolitical instability.
- 01JPMorgan analysts report simultaneous outflows from Bitcoin and gold ETFs, indicating a cooling trend in the debasement trade.
- 02The outflows are attributed to increasing optimism regarding a potential US-Iran deal rather than a preference shift between Bitcoin and gold.
- 03Bitcoin ETFs saw outflows of $733.4 million, marking the largest daily outflow since January 29.
- 04BlackRock's IBIT experienced its second-largest daily outflow, losing $527.8 million on Wednesday.
- 05Technical indicators show Bitcoin is in a bearish trend, with a death cross pattern persisting in moving averages.
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Analysts at JPMorgan Chase & Co. have observed that recent outflows from both Bitcoin and gold exchange-traded funds (ETFs) signal a cooling of the debasement trade, which typically involves purchasing these assets as hedges against inflation and geopolitical risks. The report by managing director Nikolaos Panigirtzoglou highlights that these outflows are more closely tied to rising hopes for a peace agreement between the US and Iran, rather than a shift in investor preference from Bitcoin to gold. Over the past two weeks, Bitcoin ETFs experienced significantly larger outflows, totaling $733.4 million, while gold ETFs also faced declines. Notably, BlackRock's IBIT ETF recorded its second-largest single-day outflow of $527.8 million. Additionally, futures markets show a reduction in institutional investor exposure to both assets. Technical analysis indicates that Bitcoin is currently in a bearish trend, with key moving averages signaling a breakdown from previous levels of support. The overall performance of Bitcoin remains down by 32.50% over the past year.
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