JPMorgan forecasts Bitcoin dominance over Ether and altcoins to extend through
JPMorgan forecasts Bitcoin dominance over Ether and altcoins to extend through
Bitcoin’s market dominance, currently around 55%, is expected to persist through 2025, according to a report by JPMorgan analysts led by Nikolaos Panigirtzoglou.
Several factors contribute to this projection, with bitcoin increasingly viewed as a key asset in the "debasement trade," alongside gold. Inflows into spot bitcoin exchange-traded funds (ETFs) have far outpaced those into ether-based ETFs, with the latter seeing just $2.4 billion in inflows to date, highlighting limited demand for alternative token ETFs, reports The Block.
Institutional investment remains a strong driver. MicroStrategy, for example, is only halfway through its $42 billion bitcoin acquisition plan, providing additional momentum for the cryptocurrency. Analysts also suggest that potential crypto reserves held by governments or central banks are likely to prioritize bitcoin exclusively, further cementing its position.
Shifting market dynamics
Bitcoin’s advancements in Layer 2 technology are enabling support for smart contracts, challenging Ethereum’s dominance in this domain. Meanwhile, institutional blockchain use cases, such as digital bond trading and settlements, are increasingly favoring private or consortium blockchains over public platforms like Ethereum, due to better privacy and customization.
Emerging trends in the crypto space also reflect a shift from token-centric strategies toward infrastructure-focused projects. For example, Base, an Ethereum Layer 2 network developed by Coinbase, has achieved significant market share without issuing a token, redirecting value toward private corporations rather than public tokens.
While clearer U.S. regulations could enhance the appeal of tokens beyond bitcoin, analysts warn that such clarity is unlikely to materialize soon, as the new administration’s priorities lie elsewhere. The delay may prolong the crypto market’s consolidation phase, leaving it sensitive to broader equity market trends, especially in the tech sector.
At the same time, JPMorgan CEO Jamie Dimon still does not see value in Bitcoin.
