This view marks a shift from JPMorgan’s earlier warning that Strategy’s Bitcoin sales could create market risks due to its large holdings.
JPMorgan reportedly said that Strategy’s Bitcoin sales were not the biggest long-term risk facing Bitcoin. The bank said the most significant structural threat is traditional finance adopting blockchain technology through private networks rather than public blockchains.
Strategy’s (MSTR) Bitcoin (BTC) sales aren’t the top cryptocurrency’s biggest problem, JPMorgan reportedly said in a note to investors on Thursday. He said greater structural risk is developing with traditional finance adopting blockchain technology in a way that completely bypasses public and permissionless networks like Bitcoin and Ethereum (ETH).
“We do not view strategy as the main structural threat to bitcoin,” the analysts said, according to a report by The Block. “In our view, the most significant risk to bitcoin comes from the broader crypto ecosystem and blockchain adoption within traditional finance continuing to expand in ways that bypass public permissionless networks.”
The call marks a departure from JPMorgan’s own reporting earlier this month, when analyst Nikolaos Panigirtzoglou warned that Strategy’s decision to selectively sell Bitcoin for preferred dividends created “avoidable” two-way flow risk for the market, given the company’s roughly 4% share of the circulating BTC supply. This latest note reframes this concern as secondary to a larger, slower-moving threat.
MSTR Stock Lags Bitcoin’s Gains
Bitcoin price gained 1.3% over the past 24 hours to trade at around $62,600, while MSTR stock was up slightly by 0.7% in midday trading. Retail sentiment around both continued to move into “bullish” territory over the past day.
Retail traders on Stocktwits predicted that Executive Chairman Michael Saylor would likely continue to dump Bitcoin and dilute the stock.
Why the CLARITY Act May Not Help Bitcoin
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