JP Morgan has forecasted a shift in the cryptocurrency landscape, predicting that Ethereum (ETH) will outshine Bitcoin (BTC) in the year 2024. Despite Bitcoin’s imminent halving event, JP Morgan remains “cautious” about its prospects, citing factors such as excessive optimism and the embedded nature of the upcoming halving in Bitcoin’s current value.
JP Morgan analysts express skepticism about Bitcoin’s potential in 2024, emphasizing the challenges faced by the cryptocurrency throughout 2022 and early 2023. Despite widespread anticipation surrounding the approval of the Spot Bitcoin ETF and the approaching halving, the bank remains less confident in Bitcoin’s positive performance next year.
The bank’s cautious outlook stems from concerns about overexcitement potentially working against Bitcoin. They highlight the risk of an overbought asset, especially in a market that has already factored in the impact of the impending halving event. JP Morgan underscores how the halving event could significantly impact miners, leading to a potential doubling of production costs and a 20% decrease in hash rates, prompting some miners to exit the market.
Contrastingly, JP Morgan looks towards Ethereum, acknowledging the forthcoming EIP-4844 “Proto-dank sharding” update and its potential impact on Ethereum’s performance in the coming year. While expressing concerns about centralized mining on the Ethereum network, the bank suggests that Ethereum might emerge as the stronger contender in 2024.
As JP Morgan diverges from the bullish sentiment surrounding Bitcoin, the cryptocurrency market awaits to see if Ethereum can indeed surpass Bitcoin, marking a notable shift in the dynamics of the crypto space.
Source: Watcher Guru
