JPM warns of significant risks in Bitcoin, dollar, and global bonds due to liquidity shift

From Investing.com

November 29, 2024 08:29 AM:

JPMorgan analysts warn of significant positioning risks for Bitcoin, the U.S. dollar, and global bonds in 2025 due to shifting liquidity and demand dynamics. Equities, the dollar, and Bitcoin are most vulnerable, while non-gold commodities are least vulnerable. Global bond demand is projected to decline by $0.9 trillion, potentially leading to upward pressure on yields.

Central banks, including the Federal Reserve and ECB, will play a crucial role in addressing the global bond imbalance. The Federal Reserve is expected to end balance sheet contraction in early 2024, while the ECB will stop reinvestments in its PEPP portfolio. The Bank of Japan is likely to accelerate net bond sales in 2025, contributing to modest improvements in central bank bond demand.

Read more at Investing.com: Bitcoin, dollar and this asset are most vulnerable into 2025 positioning-wise: JPM By Investing.com