JP Morgan predicts Ethereum’s supremacy over Bitcoin in 2024

Financial giant JP Morgan has put forth a prediction that Ethereum (ETH) will outshine Bitcoin (BTC) in 2024. Despite the looming halving event for Bitcoin, which typically results in a reduction of circulating tokens, JP Morgan remains cautiously optimistic about Ethereum’s potential ascent.

JP Morgan’s analysts have cited concerns over “excessive optimism” surrounding Bitcoin in the coming year. They underscore the significant influence of the impending halving event on the current value of the cryptocurrency, leading them to temper expectations for substantial growth in 2024.

The banking institution’s tepid outlook for Bitcoin stands in contrast to the prevailing enthusiasm in the market. With anticipation building around the potential approval of the Spot Bitcoin ETF and the forthcoming halving, the general sentiment has been one of heightened excitement. However, JP Morgan’s reservations about Bitcoin’s performance in the coming year suggest a more measured perspective.

JP Morgan specifically highlighted the potential impact of the halving event on miners, projecting a doubling of production costs based on current hash rates and mining difficulty. They further predicted a 20% decline in hash rates, potentially prompting over-costed miners to exit the market. Additionally, they cautioned against overly optimistic expectations regarding capital inflows into Spot Bitcoin ETF products.

Conversely, JP Morgan acknowledged the upcoming Ethereum Improvement Proposal (EIP-4844) known as “Proto-dank sharding.” While expressing concerns about centralized mining on the Ethereum network, they discussed the update’s potential influence on Ethereum’s performance in the coming year.

As the crypto landscape navigates uncertainties, JP Morgan’s divergence from the bullish Bitcoin narrative raises questions about the cryptocurrency’s trajectory in 2024. If their projections hold true, Ethereum could emerge as the favored contender, reshaping the dynamics of the digital currency market.

Source: Watcher Guru