Financial giant JP Morgan has defied the general cryptocurrency optimism for Bitcoin in 2024, foreseeing Ethereum’s ascent to surpass Bitcoin next year. Despite the looming halving event for Bitcoin, which typically generates bullish sentiments, JP Morgan maintains a “cautious” outlook for the industry.
JP Morgan’s analysts attribute their skepticism toward Bitcoin’s performance in 2024 to the existing “excessive optimism” that, they believe, could work against the flagship cryptocurrency. The forthcoming halving event, reducing the total circulating Bitcoin tokens, is considered by the analysts to be heavily factored into the current value of the asset, dampening expectations for a substantial surge in the coming year.
Bitcoin’s struggle for mainstream acceptance throughout 2022 and early 2023 is acknowledged by JP Morgan, referencing the broader cryptocurrency winter that cast doubt on the industry’s recovery potential. As the cryptocurrency space buzzes with anticipation for the possible approval of the Spot Bitcoin ETF and the upcoming halving, JP Morgan remains less convinced about Bitcoin’s positive trajectory.
JP Morgan’s unconventional prediction places Ethereum in the spotlight for 2024. The bank’s cautious forecast underscores concerns about Bitcoin’s overbought status, driven by exaggerated expectations surrounding the halving event. The analysts also delve into the potential challenges for Bitcoin miners, predicting a doubling of production costs and a 20% decrease in hash rates.
Contrarily, JP Morgan sheds light on Ethereum’s prospects, particularly with the upcoming EIP-4844 “Proto-dank sharding” update. While expressing reservations about centralized mining on the Ethereum network, JP Morgan suggests that Ethereum’s trajectory may outshine Bitcoin’s if the concerns about the latter materialize.
As the cryptocurrency landscape evolves, JP Morgan’s contrarian stance adds a layer of uncertainty to the otherwise bullish sentiments surrounding Bitcoin, opening up new avenues for discussion about Ethereum’s potential dominance in the coming year.
Source: Watcher Guru
