JPMorgan Cautious on Crypto Markets Amid Strategy's Bitcoin Sale

JPMorgan analysts have issued a warning that Strategy's recent sale of 32 bitcoin may have unsettled crypto markets. The bank believes that the company needs to rebuild its dollar reserves to restore confidence among investors.

The sale, which was described as 'symbolic and voluntary,' raised concerns about whether Strategy could meet dividend obligations without selling more of its BTC stack. According to JPMorgan analysts, Strategy's current dollar reserves cover only around 6.3 months of dividend payments, a level they believe may be too thin for investors.

The bank estimates that total digital asset inflows have slowed down significantly, with year-to-date flows at around $22 billion, implying an annualized pace of roughly $52 billion, about half the level recorded in 2025. JPMorgan has also turned cautious on crypto, citing weaker capital flows and reduced confidence in US regulation.

The bank still expects Strategy to continue buying BTC but believes that a constructive second half would be conditional on the company clarifying its strategy for meeting dividend payments of $1.7 billion a year and on the approval of the US market structure legislation.