JPMorgan says Strategy's Bitcoin sales are a short-term concern, but the bigger long-term risk is that banks and institutions adopt private blockchains over public networks, reducing activity and capital flows across the broader crypto ecosystem.
JPMorgan urged Congress to pass clear digital asset legislation with robust safeguards, warning that without robust oversight, crypto innovation could create shadow-banking risks and undermine financial stability.
JPMorgan says Bitcoin mining economics have deteriorated as BTC trades about 19% below its estimated $78,000 production cost, forcing public miners into record coin sales and rendering roughly 20% of the industry unprofitable.
Bitcoin is struggling to break above $70K as profit-taking caps rallies, even as Wall Street firms grow more bullish on equities amid signs the recent correction may be ending.
JPMorgan is exploring whether to offer spot and derivatives bitcoin trading to institutional clients, reflecting rising demand for U.S. bank-grade crypto execution
JPMorgan strategists say Bitcoin looks undervalued versus gold after a 20% drop in October caused by futures deleveraging and a $128 million DeFi hack.