JPMorgan stated that Bitcoin’s dominance over altcoins will continue in 2025.

76

JPMorgan analysts have predicted that Bitcoin will maintain its dominant position over Ethereum and other altcoins in 2025

According to The Block, experts have identified eight key factors that could strengthen the position of the leading cryptocurrency:

1. Bitcoin as an Inflation Hedge: Analysts highlight that Bitcoin can serve as a digital equivalent of gold, integrating into “anti-inflation strategies.” This is evidenced by the strong interest in spot Bitcoin ETFs compared to the more moderate demand for Ethereum funds.
2. MicroStrategy’s Strategy: The company has only partially implemented its plan to acquire Bitcoin worth $42 billion, which continues to bolster confidence in the asset.
3. Government Cryptocurrency Reserves: JPMorgan believes that future cryptocurrency reserves of governments, including the U.S. central banks, are likely to focus exclusively on Bitcoin.
4. Second-Layer (L2) Network Development on Bitcoin: These technologies contribute to improving scalability and functionality within the Bitcoin ecosystem.
5. Shift of Blockchain Applications to Private Networks: Experts note that due to greater privacy and flexibility, private networks are becoming a priority for major players, reducing the appeal of public blockchains like Ethereum.
6. Focus of New Projects on Infrastructure: New initiatives increasingly concentrate on creating technological infrastructure rather than issuing tokens, signaling a departure from strategies characteristic of the 2021–2022 bull market.
7. Weak Interest in Decentralized Projects: Examples include decentralized social platforms like Friend.tech, Farcaster, and Lens, which quickly lost popularity due to declining user activity.
8. Cryptocurrency Regulation in the U.S.: Clearer and more crypto-friendly laws could enhance investor confidence, though questions remain about how this will support the development of public blockchains like Ethereum.

The dominance of Bitcoin over the past month:

Thus, JPMorgan believes Bitcoin will continue to lead amid these trends and shifts in the cryptocurrency ecosystem.

“The cryptocurrency market remains in a consolidation phase as it awaits regulatory clarity from the new U.S. administration. However, implementing this policy may take time, as the administration’s primary focus is likely to be on tariffs and immigration. The delay in regulatory clarity could prolong the consolidation phase, making the market highly sensitive to movements in the technology sector of the stock market” – JPMorgan concluded.