JPMorgan analyst Nikolaos Panigirtzoglou disclosed that the retreat of fiat currency depreciation hedging trades has been ongoing, with the pace of Bitcoin's retreat recently accelerating. Approximately $20 billion flowed out of gold ETFs in the week ending June 5, while Bitcoin ETFs have gradually increased outflows over the past four weeks. Depreciation hedging trades refer to investors purchasing Bitcoin and gold in response to geopolitical uncertainty, inflation, rising government debt, and the need for diversification away from the dollar. JPMorgan indicated that this trade has been continuously fading in ETFs, futures markets, and investor positions.

The correlation between Bitcoin and the real yield of 10-year U.S. Treasuries has recently turned negative, while the correlation between gold and the S&P 500 is closer to the positive correlation between Bitcoin and stocks, indicating that both have recently behaved more like risk assets. Analysts reiterated that a strengthening in the second half of the year requires clear dividend plans from treasury companies and the passage of the Clarity Act, which currently has a probability of less than 50% for passage.

However, the current market weakness may ultimately become a 'bullish reverse signal.'