The weaker dollar isn't boosting Bitcoin as expected. Gold and other hard assets are rallying, but Bitcoin lags, treated as a liquidity-sensitive risk asset. According to CoinDesk, the dollar's decline hasn't triggered the customary Bitcoin surge, which lost 13% over the past year despite the Dollar Index (DXY) dropping 10%. J.P. Morgan Private Bank attributes this anomaly to short-term market flows and sentiment rather than fundamental shifts in growth or monetary policy. Yuxuan Tang, head of macro strategy at J.P. Morgan, noted that recent dollar weakness stems from market sentiment rather than economic fundamentals. This differs from historical patterns where Bitcoin typically benefits from dollar declines. While gold thrives in this environment, Bitcoin remains range-bound, reflecting skepticism in the crypto market about the dollar's weakness being a stable trend. The bank suggests that until growth or rate dynamics revert to primary drivers in currency markets, Bitcoin may continue to underperform compared to traditional hedges like gold. Investors are advised to look towards assets that directly benefit from dollar diversification, further sidelining Bitcoin as a store of value. The current landscape underscores the evolving relationship between Bitcoin and traditional financial assets, pointing to a need for clearer macroeconomic signals to attract new capital into the crypto space.