JPMorgan warns private blockchains pose greater long‑term risk to Bitcoin than corporate sell‑offs

JPMorgan analysts, led by Nikolaos Panigirtzoglou, argue that the primary long‑term threat to Bitcoin is not corporate sell‑offs such as MicroStrategy’s 4 % holdings, but the growing adoption of private, permissioned blockchain networks by banks and large institutions. The bank cites its own Kinexys platform, a permissioned rail that has processed over $4 trillion in cumulative transaction volume, as an example of how regulated firms can use distributed‑ledger technology without relying on public crypto networks.

Analysts note a $50 billion market for real‑world asset tokenisation, describing current activity as early experimentation. They also warn that upcoming crypto legislation, such as the CLARITY Act, may not resolve Bitcoin’s structural challenges and could instead accelerate the issuance of tokenised deposits, potentially reducing demand for public‑chain stablecoins.