JPMorgan Downgrades MSTR Threat to Bitcoin, Sees Bigger Risk in Private Blockchain Adoption

JPMorgan has revised its stance on the potential risks facing Bitcoin (BTC) and Ethereum (ETH), downplaying the impact of Strategy's (MSTR) large Bitcoin sales.

The bank now sees a bigger threat in traditional finance adopting blockchain technology through private networks, bypassing public permissionless networks like BTC and ETH.

In a note to investors, JPMorgan analysts stated that even if the CLARITY Act passes later this year, it may not resolve the broader risks faced by Bitcoin.

The CLARITY Act could accelerate bank-issued tokenized deposits, strengthening incumbent financial institutions while crowding out public blockchain-based stablecoins, rather than expanding room for open networks.