JPMorgan, one of the leading banks in the U.S. and worldwide, believes Bitcoin will maintain its dominance over Ethereum and other altcoins in 2025. Bank analysts have outlined 8 key reasons supporting this strong expectation. Here are the details!
Why Will Bitcoin Maintain Its Leadership?
In recent years, Bitcoin has gained significant momentum, particularly following ETF approvals, sparking ongoing debates among altcoin investors. However, JPMorgan analysts, led by Nikolaos Panigirtzoglou, addressed this topic decisively in their report, stating that Bitcoin’s dominance will continue.
JPMorgan emphasizes 8 primary factors that reinforce Bitcoin’s dominance. The first is the devaluation of local currencies, which drives both individuals and institutions to seek safer, supply-limited assets. Gold and Bitcoin are the most popular options in this category. Investors looking to hedge against devaluation view Bitcoin as a secure haven.
Another critical factor is MicroStrategy’s massive Bitcoin purchase plan. The company has only achieved half of its $42 billion acquisition target and, according to analysts, will continue aggressive purchases this year. This is expected to increase Bitcoin demand and elevate its price.
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The report also highlights countries planning to add Bitcoin to their reserves. Notably, the U.S. and other major countries adding Bitcoin to their reserves could trigger significant price increases this year.
Bitcoin’s Lightning Network and other second-layer solutions are also taking the leading cryptocurrency to a new level. These networks not only make Bitcoin a store of value but also position it as a competitor to Ethereum and similar platforms. Bitcoin’s support for smart contracts is expected to expand its use cases.
In the corporate world, another notable trend is the shift of transaction settlements and digital bond trading to private or consortium blockchains. While this reduces interest in open networks like Ethereum, demand for Bitcoin’s network is projected to remain steady.
Moreover, the focus of new projects is changing. Many are now prioritizing infrastructure development over token issuance. This strategic shift strengthens Bitcoin’s position while paving the way for innovation rooted in infrastructure.
The report also points to the decline of decentralized projects. Platforms like Friend.tech, Farcaster, and Lens have yet to achieve widespread adoption. Analysts believe these projects need more time for broader acceptance.
Finally, the report underscores the uncertainty surrounding potential positive regulations in the U.S. While such regulations are expected to benefit Bitcoin, their impact on altcoins remains unclear. This regulatory shift is anticipated to further solidify Bitcoin’s leadership.
These 8 key reasons clearly illustrate why Bitcoin will retain its dominance in 2025. For altcoins to challenge this narrative, more time and robust strategies will be essential.
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