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JP Morgan Claims Ethereum Will Outperform ‘Overpriced’ Bitcoin in 2024
- The banking giant JP Morgan sees Bitcoin as overvalued and has downplayed the impact of its potential spot ETF and halving event.
- However, the institution believes the upcoming Proto-dank Ethereum upgrade may drive additional growth through 2024.
- JP Morgan’s past criticisms of crypto raise some questions about the company’s objectivity on such matters.
Anticipation has swelled over the past few months about several major events in 2024 may kickstart Bitcoin – and the broader crypto market’s – next bull run. Leading speculation is the impending approval of a spot BTC ETF, alongside a predetermined halving of the Bitcoin block reward. However, financial giants JP Morgan Chase, aren’t convinced.
Halving and Spot ETF Already ‘Priced In’
According to the banking goliath, who has a whopping USD $2.5 trillion (AUD $3.73 trillion) assets under management, Bitcoin is already overbought and there is “excessive optimism” regarding a potential ETF approval.
Key analyst Nikolaos Panigirtzoglou released a report stating that:
Bitcoin halving is largely priced in…[and its effect is] predictable and in our opinion…well-factored into the current Bitcoin price.
Nikolaos Panigirtzoglou The team is also trepidatious about the impact the spot ETF may have on Bitcoin’s value. The report argued that such funds are already approved in Canada and Europe, but have only received lukewarm interest from institutional investors.
Ethereum May Be Set to Outperform Bitcoin in 2024
While JP Morgan is mostly bearish on the crypto market’s prospects going forward, the outlook wasn’t all negative. The team believes that Ethereum may lead the way in the new year, pointing toward the proposed “Proto-Danksharding upgrade” as a significant improvement. They also made note of the recent swell in DeFi activity, singling out Aptos and Pulsechain and renewed interest in NFTs thanks largely to Bitcoin Ordinals.
It’s worth remembering that JP Morgan, while a powerhouse with significant influence over key financial markets, may be a little biased when discussing the crypto industry. Just a few days ago, CEO Jamie Dimon didn’t mince words in his opinion of the blockchain world:
If I was the government, I would close [crypto] down. The true use case for it is criminals, drug traffickers, money laundering [and] tax avoidance.
Jamie Dimon Naturally, Dimon failed to mention that JP Morgan Chase itself has been fined USD $35 billion (AUD $52.24 billion) for facilitating elicit and fraudulent activities.
Author
Ben Knight
Ben Knight is a writer and editor from Melbourne with a passion for all things music and finance. He enjoys turning complex topics – especially the technical details of cryptocurrency – into digestible bites that anybody can understand. He acquired his Master’s in Writing, Editing and Publishing from RMIT in 2019 and has run his own creative writing business ever since.
