JPMorgan analysts have highlighted a significant risk to Bitcoin stemming from the increasing adoption of blockchain applications that are not related to public chains. According to a report by The Block, while recent Bitcoin sell-offs by Strategy and its BTC liquidation plans may cause temporary pressure, they are not seen as the primary structural risk for Bitcoin. The greater threat lies in the shift of blockchain applications, such as payments and settlements, towards bank-built or regulatory-friendly permissioned chains and unified ledgers. If tokenized deposits, SWIFT blockchain projects, and central bank digital currencies become integrated within traditional financial infrastructures, and settlements increasingly use private or deferred netting models, the activity, liquidity, and capital flow on public chains and tokens could be diminished. This shift could also lead to stablecoin demand being partially replaced by bank tokenized deposits, potentially suppressing Bitcoin's performance. However, analysts note that hybrid architectures, favorable regulations for public chain stablecoins, or a strengthened 'digital gold' narrative could alter this outlook.