Sales of Bitcoin reserves by Strategy only exert periodic pressure on the market. The real structural threat to Bitcoin is the development of private blockchain infrastructure, according to JPMorgan analysts. This was reported by The Block.
The bank described a negative scenario in which tokenization, payments, and settlements continue to migrate to closed networks.
If this occurs, the broader crypto ecosystem risks facing a “structural derating”—a slowdown in activity, reduced liquidity, and weakened capital flows, ultimately impacting Bitcoin.
JPMorgan estimates that institutional adoption has so far favored permissioned blockchains, as they offer higher levels of privacy, AML/KYC controls, direct governance, and regulatory certainty.
“This poses a competitive threat to public blockchains like Ethereum,” the analysts stated.
Separately, JPMorgan mentioned the position of the Bank for International Settlements (BIS), which warned about the risks of using public blockchains in systemically important financial infrastructure. Instead, the BIS promotes unified ledgers with permissioned access, integrating central bank digital currencies, commercial bank deposits, and tokenized assets in a regulated environment.
If such solutions become widespread, especially in the non-transferable form preferred by regulators, the need for stablecoins in institutional payments and settlements could significantly decrease. This trend could be reinforced by the SWIFT blockchain initiative and CBDC projects.
Analysts also questioned the efficiency of settlements through public networks: deferred and netting operations reduce liquidity needs, enhance capital efficiency, and better align with funding management practices.
Even the potential approval of the CLARITY Act, according to JPMorgan, may not necessarily eliminate risks. Clearer rules for digital assets could simultaneously encourage the development of bank-issued tokenized deposits, strengthening the position of existing financial institutions and limiting the role of stablecoins on public blockchains.
As an alternative, analysts suggested a hybrid model combining the functions of public and private protocols.
Earlier, in June, JPMorgan highlighted the worsening economics of Bitcoin mining, as the asset has been trading below the cost of production for an extended period.
