JPMorgan Warns Private Blockchain Infrastructure Poses Structural Threat to Bitcoin
JPMorgan analysts caution that the real long-term risk to Bitcoin is not periodic selling from Strategy's reserves but the migration of tokenization, payments, and settlements to private blockchains, which could lead to a structural derating of the broader crypto ecosystem.
JPMorgan analysts have identified a structural threat to Bitcoin that goes beyond periodic selling pressure from corporate reserves. While the sale of Bitcoin holdings by Strategy creates only temporary market headwinds, the bank warns that the development of private blockchain infrastructure poses a more fundamental risk.
According to the analysts, a negative scenario could unfold in which tokenization, payments, and settlement systems increasingly migrate to closed, permissioned networks. If this shift materializes, the broader cryptocurrency ecosystem may face a "structural derating" — characterized by slowing activity, declining liquidity, and weakened capital flows.
In such an environment, Bitcoin itself would not be immune. The erosion of network effects and capital inflows could ultimately weigh on the leading digital asset, undermining its long-term value proposition as a decentralized store of value.
Source: ForkLog