Analysts say multiple factors are threatening the leading cryptocurrency. We break down what could stand in the way of BTC▲$62,630.00’s price growth.
JPMorgan analysts said Strategy’s recent bitcoin sales are creating only periodic pressure on the market and are not a major structural threat to the leading cryptocurrency. The real risk, they argue, is that tokenization, payments, and settlements are increasingly moving to private blockchains that don’t require public crypto networks.
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If that trend continues, the broader crypto ecosystem could face “structural de-rating“–slower activity, declining liquidity, and weaker capital flows that would ultimately hit bitcoin (BTC) as well.
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Why Institutions Are Choosing Private Blockchains Over Bitcoin
According to The Block, JPMorgan explained that financial institutions prefer private networks because of KYC, AML, confidentiality, scalability, governance, and regulatory certainty requirements. This creates a competitive challenge for public blockchains like Ethereum (ETH).
The analysts also cited the Bank for International Settlements’ position. The BIS has warned of risks from using public blockchains in systemically important financial infrastructure and promotes “unified ledgers“–closed platforms combining tokenized deposits, CBDCs, and tokenized assets in a regulated environment.
Banks are actively building their own solutions. Tokenized deposits–digital versions of bank deposits protected by existing regulations–could reduce the need for stablecoins in institutional payments and settlements. SWIFT’s blockchain initiative and CBDC projects could reinforce the trend.
Read more: The End of Crypto Privacy? How Global Regulations Are Changing Everything in 2026
Tokenized Asset Market: Private Infrastructure Over Public Networks
JPMorgan analysts noted that the tokenized RWA market, currently about $50B, could increasingly develop on private infrastructure. Asset issuance, custody, settlement, and lifecycle management of tokenized instruments could increasingly take place in institutions’ own networks. Public blockchains would be used only for distribution, cross-network interaction, and limited secondary trading.
Analysts also questioned the efficiency of settlement via public networks, noting that deferred and netted operations reduce liquidity needs and better match funding practice.
Analysts acknowledged their forecast could be wrong. Wide stablecoin adoption, a hybrid model where private and public blockchains coexist, or bitcoin maintaining its “digital gold” status could all alter the outcome.
Learn more: How to Invest in Tokenized Treasuries — Step-by-Step Guide
Source: Original Article
