JPMorgan Flags Bitcoin Sales Policy as Two‑Way Risk to Crypto Markets

JPMorgan Chase & Co. warned that Strategy’s bitcoin sales policy injects a two‑way risk into crypto markets, creating avoidable volatility.

bitcoin sales policy and market instability

The bank argues the current approach, which forces clients to liquidate holdings under preset price bands, amplifies price swings and erodes confidence. Analysts note that replacing the policy with an equity‑issuance framework could bolster liquidity without the downside of forced sales. A

“fundamental misalignment of incentives”

was cited in an internal memo, echoing concerns raised by Reuters. The risk metric, measured by price volatility, showed a ↓ 12% increase after the policy’s rollout. JPMorgan recommends a shift toward equity issuance to build cash reserves, arguing it would dampen speculative pressure and stabilize price trajectories.

Reported by: Lyra Valance

Digital Assets & Web3 Insider