Will Bitcoin (BTC) remain the most capitalized cryptocurrency on the market in 2025, far ahead of Ether (ETH)? For JP Morgan analysts, the answer seems obvious: the dominance of Bitcoin over other cryptocurrencies will continue this year for multiple reasons.
Against altcoins, Bitcoin will still be strong in 2025 according to JP Morgan
In a report published on Wednesday, analysts at the financial holding company JP Morgan said that Bitcoin (BTC) would continue to assert its dominance over other cryptocurrencies at least until the end of the calendar year.
Currently, according to the current price of BTC, the capitalization of the cryptocurrency is higher to 2 trillion dollars. This corresponds to 55% of the total capitalization of the cryptocurrency market. For comparison, Ether (ETH), 2nd in the ranking, represents “only” 412.5 billion dollars.
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“ We expect to the domination of Bitcoin over Ether, and over altcoins in generalover the whole of 2025, for several reasons, » specifies the document. In all, 8 factors would help explain why Bitcoin will continue to dominate the cryptocurrency market so much.
Firstly, JP Morgan mentions recent comparisons made between Bitcoin and gold. Cryptocurrency is increasingly considered as the digital counterpart of the precious metal, as evidenced by net inflows recorded by spot Bitcoin ETFs a year after their launch, in parallel with those of the more modest Ethereum spot ETFs.
Then the banking institution referred to the increase in the number of companies and governments planning to build up a strategic reserve in BTC. Inevitably, an adoption of cryptocurrency in the United States reserve would have a significant impact on its price according to analysts.
The example of MicroStrategy was mentioned by JP Morgan. The company led by Michael Saylor is one of the first to have created a reserve of its kind. It aims to acquire for $42 billion in BTCand has only fulfilled half of this objective so far.
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More reserves, favorable political context, development of layers 2: the reasons for BTC’s dominance are multiple
JP Morgan also referred to Layer 2 multiplication based on Bitcoin allowing it to support smart contracts in particular. In this way, the network should be placed on par with its main competitors like Solana or Ethereum.
At the same time, developers of institutional applications based on blockchain, such as digital bond trading, are increasingly turning to private networks. According to analysts, this would harm to the attractiveness of blockchains used by certain institutional players like Ethereum, which, through a snowball effect, has an impact on the price of ETH.
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Also, JP Morgan highlighted the emergence of projects favoring the development of infrastructures or applications based on the blockchain, rather than the own issuance of tokens, which marks a paradigm shift compared to previous years. The example of Coinbase's Layer 2 Base supports the analysts' comments.
Finally, the financial institution announced the possible evolution of the regulatory framework for cryptocurrencies in the United States during the year 2025. With the coming to power of Donald Trump, a law could regulate the marketpromoting the adoption of cryptocurrencies and innovation in this sector on American soil. Bitcoin would then be the first to benefit from it.
Source: Business Insider
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Surprised by the rise of crypto-assets at the end of the 2010s, I began to closely follow this sector which fascinates me to the greatest extent. When I'm not in football stadiums, rugby stadiums or handball halls, I work on writing relevant articles around cryptocurrencies and more broadly, Web3.
Zacharie Tazrout
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