🙇‍♂️ The main long-term risk for Bitcoin is not related to Strategy’s sales, but to the development of blockchain infrastructure that bypasses public networks and does not create demand for their tokens, analysts at JPMorgan believe.

“We do not view Strategy as the main structural threat to Bitcoin. A more significant risk is that traditional finance continues to embed blockchain in ways that bypass public, permissionless networks,” JPMorgan said in its report.

Based on the bank’s assessment, financial institutions prefer permissioned blockchains due to requirements for confidentiality, client identification, transaction controls, governance, and legal accountability. If tokenization, payments, and settlement increasingly move into such infrastructure, activity, liquidity, and capital inflows into public networks could slow down.

💁‍♂️ The analysts also separately pointed to a threat for Ethereum and stablecoins. The spread of tokenized bank deposits, central bank digital currencies, and SWIFT infrastructure could reduce the role of public blockchains in institutional settlement. At the same time, JPMorgan’s forecast may not come true if a hybrid model involving both private and public networks takes hold, or if Bitcoin continues to be perceived mainly as digital gold.