JP Morgan are forecasting Ether to outperform Bitcoin in 2024.
Suggesting this will be due to underperformance by BTC:
- the bitcoin halving event in 2024 is likely already factored into the current market price (I posted on this here)
- the impact of the halving on Bitcoin supply is predictable and priceable
- the production cost for Bitcoin mining could rise from about $22,000 to around $44,000 post-halving
- a potential 20% drop in the hash rate and the market exit of miners with higher overheads
While for Ethereum:
- anticipated EIP-4844 upgrade, known as “Protodanksharding” which is expected to enhance Ethereum’s throughput and fees significantly
- Protodanksharding is expected to take place during the first half of 2024
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Interestingly JPM is wary of the impact of the potential approval of a spot Bitcoin ETF
- might not attract fresh capital into the crypto market
- could shift capital from existing Bitcoin products, like the Grayscale Bitcoin Trust and Bitcoin futures ETFs, into the spot products
- could exert downward pressure on bitcoin’s price if funds exit the market instead of moving into other bitcoin instruments
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Anyway, well done to the JPM analysts for even surviving within the bank. The big boss is not a fan of crypto:
