JP Morgan Predicts Ethereum to Surpass Bitcoin by 2024

• JP Morgan Forecasts Ethereum to Outshine Bitcoin in 2024
• Bitcoin's Performance and Prospects in 2024: A JP Morgan Perspective
• JP Morgan's Cautious Outlook
• Effects of the Halving Event on Miners
• Ethereum's Performance and the EIP-4844 Upgrade

JP Morgan Forecasts Ethereum to Outshine Bitcoin in 2024

JP Morgan, despite the forthcoming halving event for Bitcoin$42,260 -0.64%, anticipates that Ethereum$2,315 -2.42% (ETH) will surpass Bitcoin (BTC) in terms of performance in 2024. They attribute this prediction to the prevailing excessive optimism believed to be negatively impacting Bitcoin's prospects for the upcoming year. The bank's analysts also suggest that the Bitcoin halving event is already substantially factored into the asset's current value, which implies no significant gains in the coming year.

Bitcoin's Performance and Prospects in 2024: A JP Morgan Perspective

Throughout 2022 and early 2023, Bitcoin experienced significant challenges in gaining mainstream acceptance, with the crypto industry suffering a crypto winter fraught with doubts about its recovery. However, as we edge closer to 2024, enthusiasm surrounding Bitcoin is surging.

Expectations are high for a potential Bitcoin Spot ETF approval and the forthcoming halving event. Yet, JP Morgan does not foresee especially favorable outcomes for Bitcoin over the next year, predicting instead that Ethereum could shine brighter in 2024.

JP Morgan's Cautious Outlook

The bank has issued a cautious outlook for the upcoming year, taking into account several factors. They particularly underscore the potential for Bitcoin's over-exuberance to negatively impact its performance. As a result, the asset may have been overly purchased in a market that has already priced in the future halving event.

Effects of the Halving Event on Miners

JP Morgan provides insight into how the halving event will impact miners. Based on current hash rates and Bitcoin mining difficulties, they predict that production costs will double. They also forecast a 20% drop in the hash rate, which could force miners with high costs to leave the market. They believe expectations for capital inflows into Spot Bitcoin ETF products may be overstated.

Ethereum's Performance and the EIP-4844 Upgrade

On another note, JP Morgan also discussed the potential impact of Ethereum's forthcoming EIP-4844 Proto-dank sharding upgrade. They believe that this could significantly influence the asset's performance in the coming year. Nevertheless, they expressed concerns about centralized staking on the Ethereum network. Should JP Morgan's concerns about Bitcoin manifest, the asset may fail to meet the high expectations placed upon it.

Edited by Jonathan Stoker