JPMorgan Analysts Note Decline in Bitcoin and Gold Demand Amid Middle East Tensions Easing

Investors are gradually withdrawing from Bitcoin and gold markets as signs of easing tensions in the Middle East emerge, according to ChainCatcher. JPMorgan analysts, including Nikolaos Panigirtzoglou, have observed that the 'devaluation trade' driving demand for these assets is losing momentum. Over the past two weeks, both Bitcoin and gold-related ETFs have experienced significant outflows, and institutional positions in CME futures markets have weakened. This trend indicates that investors are moving away from macro hedging trades that were popular due to inflation concerns and global instability. The decline in demand is affecting both asset classes simultaneously, rather than Bitcoin funds shifting to gold. Since the Iran conflict, Bitcoin has been a primary representation of the 'devaluation trade.'