In a recent report, Wall Street giant JPMorgan warned about cryptocurrency markets heading into 2024. The report predicts that Ethereum (ETH) is poised to outperform Bitcoin (BTC) and other altcoin projects, citing an upgrade to the Ethereum blockchain that promises increased scalability. Here are the details…
JPMorgan draws attention to Bitcoin ETF decision
JPMorgan noted the U.S. Securities and Exchange Commission’s (SEC) upcoming decision on spot Bitcoin exchange-traded funds (ETFs) and said it was unlikely to yield significant market gains. The report highlighted a potential “buy the rumor” effect after the SEC approves spot Bitcoin ETFs early next year.
Analysts at JPMorgan noted that extreme optimism among crypto investors regarding the SEC’s approval of spot Bitcoin ETFs has led to overbought levels reminiscent of conditions observed in 2021. The report stated that the Bitcoin halving event expected in 2024 is already “largely priced in.”
Is the leading altcoin starting to revive? EIP-4844 upgrade and Proto-Danksharding
JPMorgan’s report highlighted Ethereum’s expected outperformance and attributed it to the EIP-4844 upgrade, also known as proto-danksharding. This development includes sharding, which increases transaction speed by splitting the Ethereum network into pieces. Proto-danksharding introduces a new type of transaction called “blob migration”.
The bank acknowledged a “resurgence” in venture capital financing in Q4 2023 but described it as temporary. Although there has been some recovery in decentralized finance (DeFi) activity, the report highlighted the ongoing challenge of DeFi’s inability to penetrate the traditional financial system for broader adoption of crypto applications in the real world. The cryptocurrency landscape outlined by JPMorgan reflects a cautious outlook for 2024 and sheds light on Ethereum’s potential to eclipse Bitcoin. The anticipation of regulatory decisions and blockchain upgrades will undoubtedly shape the course of the market in the coming year.
VanEck expects a record on November 9, 2024
VanEck Associates, a leading mutual fund and ETF manager with over $76 billion in assets under management, has announced a bold Bitcoin price prediction for 2024. The firm’s crypto assets division is predicting the potential for an all-time high for BTC coinciding with Donald Trump’s re-election victory, citing factors such as regulatory optimism and historical market cycles.
VanEck’s Head of Digital Assets Research, Matthew Sigel, and Digital Assets Senior Investment Analyst, Patrick Bush, expect Donald Trump’s victory with 290 electoral college votes in the 2024 presidential election. The duo predicts that the price of Bitcoin will reach its all-time high on November 9, 2024, exactly three years after its last peak.
