JP Morgan has cast a “cautious” outlook for the cryptocurrency in 2024, predicting that Ethereum (ETH) will outshine Bitcoin in the coming year. This proclamation comes in the midst of heightened excitement surrounding Bitcoin, driven by expectations of a potential approval of the Spot Bitcoin ETF and the imminent halving event.
JP Morgan’s analysts cited concerns about “excessive optimism” surrounding Bitcoin and the heavy incorporation of the upcoming halving event into its current valuation. Contrary to the prevailing narrative, the banking giant anticipates a more subdued performance for Bitcoin in 2024.
The looming halving event is expected to have significant repercussions for Bitcoin miners, leading to a potential doubling of production costs. JP Morgan also foresees a 20% decline in hash rates, prompting over-costed miners to exit the market. They cautioned against exaggerated expectations of capital inflows into Spot Bitcoin ETF products.
In contrast, JP Morgan shed light on Ethereum’s potential to outperform Bitcoin, highlighting the upcoming EIP-4844 “Proto-dank sharding” update. While acknowledging concerns about centralized mining on the Ethereum network, the bank remains cautiously optimistic about Ethereum’s trajectory in 2024.
As the crypto landscape continues to evolve, JP Morgan’s divergence from the bullish sentiment surrounding Bitcoin adds a layer of complexity to the narrative, emphasizing the dynamic nature of the digital asset market.
Source: Watcher Guru