JPMorgan warns about Bitcoin sales by Strategy

JPMorgan has voiced critical remarks about the future of Strategy, the company that holds billions in Bitcoin. The US bank states that performance in the second half of this year depends heavily on how Strategy will finance its annual dividend payments of approximately $1.7 billion and whether the CLARITY Act passes the US Congress.

Bitcoin is available at OKX and Bybit.

Bitcoin sales raise concerns

The bank highlights a significant red flag: Strategy recently sold 32 Bitcoin, a move that JPMorgan considers small but nonetheless takes seriously. The real problem runs deeper: Strategy currently has only enough liquidity to cover roughly 6.3 months of dividend payments. This means the company will likely have to sell more Bitcoin to satisfy its shareholders.

For the Bitcoin market, this could have consequences. Large sales by institutional players can cause price declines, especially if market sentiment is already fragile. JPMorgan has therefore officially revised its outlook on digital assets from positive to cautious.

CLARITY Act crucial for the outlook

The CLARITY Act, an important piece of legislation for the crypto world, plays a key role in JPMorgan’s new assessment. The proposal would bring clarity to the regulation of digital assets in the US. According to JPMorgan, the probability of this bill passing this year is below 50 per cent, further increasing uncertainty around Strategy and similar companies.

These remarks from JPMorgan align with earlier analyses, such as Galaxy Research’s estimate that the chances of the CLARITY Act were already at 60 per cent. The market is currently in turmoil, with Bitcoin recently moving towards $62.000 after sharp declines. At present, Bitcoin stands at $63.113,