{"id":20413,"date":"2025-01-17T14:56:06","date_gmt":"2025-01-17T12:56:06","guid":{"rendered":"https:\/\/forklog.com\/en\/jpmorgan-sets-out-factors-driving-bitcoins-continued-dominance\/"},"modified":"2025-01-17T14:56:06","modified_gmt":"2025-01-17T12:56:06","slug":"jpmorgan-sets-out-factors-driving-bitcoins-continued-dominance","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/jpmorgan-sets-out-factors-driving-bitcoins-continued-dominance\/","title":{"rendered":"JPMorgan sets out factors driving bitcoin\u2019s continued dominance"},"content":{"rendered":"

JPMorgan analysts expect bitcoin to maintain its dominance over Ethereum and other altcoins in 2025, The Block<\/a> reported, citing a note.<\/p>\n

According to CoinGecko<\/a>, the measure stands at 54% at the time of writing, with ETH at 11.14%.<\/p>\n

\"\u0412
Data: CoinGecko.<\/figcaption><\/figure>\n

The authors identified eight key factors that could support bitcoin\u2019s continued dominance.<\/p>\n

ETF inflows<\/strong><\/h2>\n

In the analysts\u2019 view, the narrative of the first cryptocurrency as a digital component of the \u201cdebasement trade\u201d<\/span> continues to attract significant inflows into spot bitcoin ETFs from both retail and institutional investors.<\/p>\n

By contrast, Ethereum-based instruments have drawn restrained interest \u2014 since launch<\/a> they have attracted $2.6 billion. JPMorgan sees this as evidence of limited demand for future altcoin-based exchange-traded funds.<\/p>\n

\"\u0412
Data: SoSoValue<\/a>.<\/figcaption><\/figure>\n

MicroStrategy<\/strong><\/h2>\n

MicroStrategy is \u201conly halfway\u201d to executing its plan<\/a> to raise $42 billion for bitcoin purchases, the analysts calculated. In their view, the company\u2019s \u201c21\/21 plan\u201d gives the first cryptocurrency additional momentum.<\/p>\n

Crypto reserves<\/strong><\/h2>\n

JPMorgan allowed that a U.S. decision to create a cryptocurrency reserve exclusively in bitcoin would further strengthen the latter\u2019s position. Previously, colleagues at Fidelity Digital Assets forecast that not only the United States would take this path.<\/p>\n

L2<\/strong><\/h2>\n

As a fourth factor, the analysts cited advances in bitcoin second-layer solutions. In their view, this challenges platforms such as Ethereum.<\/p>\n

Blockchain<\/strong><\/h2>\n

The fifth factor is the shift of institutional blockchain applications for digital-bond trading and transaction settlement to private or consortium blockchains. JPMorgan believes these offer greater privacy and customisation, reducing the appeal of public blockchains for large institutions.<\/p>\n

Infrastructure development<\/strong><\/h2>\n

New projects are increasingly focused on infrastructure rather than token issuance. According to the report, this marks a departure from the coin-centric strategies of the 2021\u20132022 bull market. As an example, the authors point to Base, which has become popular without launching its own token.<\/p>\n

Long-term utility<\/strong><\/h2>\n

As a final factor, the analysts noted that many DeFi projects succeeded in their early stages, but as the hype faded, user activity and token prices declined.<\/p>\n

According to the analysts, examples such as Friend.tech, Farcaster<\/a> and Lens underscore the need for additional time to demonstrate long-term utility.<\/p>\n

At the same time, the authors said that as the market awaits regulatory clarity from the new U.S. administration, crypto remains in a consolidation phase. They did not rule out it dragging on, as authorities are likely to focus on other issues first.<\/p>\n

Earlier, at Steno Research predicted<\/a> bitcoin\u2019s dominance would fall to 45% in 2025.<\/p>\n","protected":false},"excerpt":{"rendered":"

JPMorgan analysts expect bitcoin to maintain its dominance over Ethereum and other altcoins in 2025, The Block reported, citing a note. According to CoinGecko, the measure stands at 54% at the time of writing, with ETH at 11.14%. Data: CoinGecko. The authors identified eight key factors that could support bitcoin\u2019s continued dominance. ETF inflows In […]<\/p>\n","protected":false},"author":1,"featured_media":20412,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[18,229],"class_list":["post-20413","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bitcoin","tag-jpmorgan"],"aioseo_notices":[],"amp_enabled":true,"views":"40","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/20413","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=20413"}],"version-history":[{"count":0,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/20413\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/20412"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=20413"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=20413"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=20413"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}