Strategy’s Bitcoin edge erodes as big banks target institutional demand

JPMorgan has filed to issue Bitcoin-backed structured notes linked to BlackRock’s IBIT ETF, which will offer up to 1.5x leveraged returns and conditional principal protection for institutional investors. This move signifies JPMorgan's deepening involvement in the cryptocurrency market, particularly as institutional interest in Bitcoin continues to grow.

Bitcoin's price surged past $90,000, driven by new Wall Street-backed cryptocurrency products, particularly from major financial players like BlackRock and JPMorgan. This significant price movement reflects a renewed interest in Bitcoin amidst a recovering market sentiment.

XRP's price has recently fallen below $2 for the first time in seven months, approaching its yearly support level of $1.79. Despite some recent recovery attempts, market momentum remains low, and analysts are outlining potential bull and bear scenarios for the cryptocurrency's future performance.

JPMorgan has introduced a structured note linked to Bitcoin, aligning with the cryptocurrency's halving cycles, predicting a dip in 2026 followed by a surge in 2028. This financial instrument reflects JPMorgan's strategic adaptation to the evolving cryptocurrency landscape and market dynamics.

Shanaka Anslem Perera, a crypto pundit, has revealed a significant financial miscalculation involving Strategy Inc.'s Bitcoin holdings, estimated at $54.59 billion. This error highlights structural flaws in the company's approach to accumulating cryptocurrency, which could have far-reaching implications for the Bitcoin market.

On-chain analyst James Check has warned that Bitcoin faces a potential political crisis alongside technical challenges if quantum computing technology advances. He emphasizes that the real danger lies in achieving consensus within the Bitcoin community rather than in the mathematical vulnerabilities of the cryptocurrency itself.

JPMorgan has severed its banking relationship with Strike CEO Jack Mallers, who claims that his support for Bitcoin and criticism of Jeffrey Epstein were the reasons behind this decision. Mallers reported that his accounts were closed without explanation, raising concerns about the bank's practices.

MSCI has initiated a consultation that could lead to the exclusion of companies holding 50% or more of their balance sheet in Bitcoin or other digital assets from its global equity indexes. This move has raised concerns about forced selling risks, particularly for Strategy ($MSTR), which is heavily leveraged in Bitcoin investments. The market reacted negatively, exacerbated by a bearish note from JPMorgan.