Private Blockchains Erode Bitcoin's Long-Term Demand

A recent report from JPMorgan highlights a potential long-term risk for Bitcoin. According to the bank, institutional adoption of private blockchain technology could divert funds away from the cryptocurrency.

The report notes that while corporate selling is not the main concern, the proliferation of institutional blockchains may weaken the narrative of long-term demand for Bitcoin. Currently, Bitcoin's RSI stands at 65.7, MACD is in bullish territory, and the funding rate is 0.01%, indicating limited short-term overheating.

Mid-term projections suggest that if institutions adopt closed infrastructure instead of open networks, expectations for Bitcoin payment and settlement adoption will weaken, likely leading to a slowdown in medium-term multiple expansion. The current price is below both the 50-day moving average of $65,637 and the 200-day moving average of $74,228, indicating structural weakness.

In the long term, JPMorgan believes that institutions may divert funds toward private blockchains rather than Bitcoin. This shift could put pressure on Bitcoin's valuation as competition among alternative assets intensifies, particularly with rising gold prices and a 10-year yield at 4.54%.