JPMorgan argues the bigger long-term risk to crypto isn’t forced selling.

It’s financial activity quietly migrating to private institutional blockchains.
Banks are already building tokenized deposit networks.
DTCC is advancing on Canton.
BIS is testing permissioned settlement infrastructure.
If tokenization, payments, and settlement increasingly happen on closed networks, public blockchains will capture less economic activity:
Less settlement
Less liquidity
Less fee generation
Less value accrual
Ethereum would likely feel the pressure first.
Bitcoin wouldn’t be immune.
The real debate isn’t public vs private blockchains.
It’s which layer institutional capital ultimately chooses to trust.
That may become one of the defining questions of this cycle.
$BTC