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Bitcoin Is No Market Hedge, JPMorgan Strategists Say

  • Crypto is an unreliable defensive hedge, JPMorgan says
  • Bitcoin skyrocketed last year on renewed Wall Street interest

JPMorgan Chase & Co. cross-asset strategists have bad news for anyone on Wall Street betting that Bitcoin is the hottest way to diversify portfolios in a world short on hedges but big on valuation risk.

Not only has Bitcoin proved lousy at offsetting short-term drawdowns in big sell-offs, its very popularity among retail investors is increasing the token’s link with cyclical assets, their research suggests.