JPMorgan Warns Circle Coinbase Battle | Bitcoin and Crypto News

JPMorgan’s latest crypto analysis warns that a new partnership between Circle, Coinbase, and Hyperliquid is triggering short-term revenue pain—and could reshape the long-term economics of USDC. The bank calls the situation a “prisoner’s dilemma,” where both companies compete fiercely for USDC distribution, risking mutual losses. JPMorgan has downgraded both firms’ earnings forecasts, citing this deal, falling crypto volumes, and plunging prices. Under the new arrangement, Coinbase treats Hyperliquid’s USDC as “on-platform,” collecting revenue but funneling 90% to Hyperliquid—a stark shift from the even split they previously enjoyed. This move underscores how intricate crypto partnerships can be—and how even giants face unexpected economic headwinds. Listen in comfort:Get a discount on a Soli Pillow: http://solipillow.com/discount/dnn. Advertise on DNN:[email protected] This is an automated, high-level news summary based on public reporting.Report issues to [email protected]. View sources & latest updates:https://sources.thednn.ai/9fcff27d3565cd94