JP Morgan, while adopting a “cautious” stance on the cryptocurrency industry for the upcoming year, has forecasted that Ethereum (ETH) will surpass Bitcoin (BTC) in 2024. This prediction comes amidst the backdrop of heightened anticipation for Bitcoin’s potential, fueled by expectations of the approval of the Spot Bitcoin ETF and an imminent halving event.
JP Morgan’s analysts expressed concerns about Bitcoin’s prospects, citing “excessive optimism” that may hinder its performance in 2024. Notably, the bank emphasized that the impact of the impending halving event is already deeply ingrained in Bitcoin’s current valuation, tempering expectations for a significant surge in the coming year.
Bitcoin’s journey throughout 2022 faced challenges, grappling with mainstream acceptance and enduring a cryptocurrency winter that cast doubt on its recovery. As the cryptocurrency landscape inches closer to 2024, sentiments surrounding Bitcoin remain mixed.
The focus on Ethereum’s potential ascent in 2024 arises from JP Morgan’s cautious forecast, pointing to the risk of overexcitement working against Bitcoin. The bank highlighted Ethereum’s forthcoming EIP-4844 “Proto-dank sharding” update as a key factor contributing to its positive outlook for the coming year.
While acknowledging potential hurdles like concerns about centralized mining on the Ethereum network, JP Morgan’s prediction introduces an intriguing narrative to the cryptocurrency sphere. If their concerns about Bitcoin materialize, Ethereum may emerge as the frontrunner, surpassing expectations in the evolving crypto landscape.
Source: Watcher Guru