JPMorgan Believes Ethereum Will Outshine Bitcoin in 2024; Here’s Why

Published: Dec 14, 2023
Written By:
Vignesh Karunanidhi
Milk Road Writer

JPMorgan released its 2024 cryptocurrency outlook this week, providing an analysis of expected price performance and adoption trends across various digital assets. While expressing caution broadly towards crypto markets, analysts highlighted Ethereum’s coming transition as a potential bright spot.

Key highlights:

  • Ethereum price expected to outperform Bitcoin based on Ethereum merge upgrades.
  • Regulatory approval of Bitcoin ETFs is unlikely to drive major upside.

JPMorgan anticipates that Ethereum will be the highest-performing cryptocurrency over the next year due to planned upgrades that will make the Ethereum network more efficient and scalable.

Read more: SushiSwap And Other DApps Exploited Through Ledger Connect Vulnerability

Ethereum to dethrone Bitcoin

The EIP-4844 upgrade, also known as “proto-danksharding,” will add capacity to Ethereum through a new transaction type called “blob-carrying transactions.” By improving network bandwidth, analysts expect demand for Ether to increase, driving price gains versus Bitcoin and other altcoins.

In contrast, JPMorgan believes Bitcoin is at an overbought level, and regulatory approval of Bitcoin exchange-traded funds (ETFs) is unlikely to have a lasting impact. They cited a “high chance of buy-the-rumor/sell-the-fact effect” post-approval, meaning prices could quickly revert lower after an initial spike.

Read more: Bitcoin Will Surge Above $80,000 In 2024, Bitwise Predicts

The report also noted nascent signs that venture capital funding is stabilizing after the crypto crash of 2022. However, decentralized finance applications still lack connectivity with mainstream finance, which analysts see as necessary for further crypto adoption.

While expressing a cautious view on cryptocurrency prices overall, JPMorgan remains constructive on Ethereum’s roadmap and expects Ether to be a relative outperformer as network upgrades roll out over the next year.

Their analysis reinforces the view that crypto returns may prove selective based on project roadmaps rather than lifting the broader asset class.

Vignesh Karunanidhi
Milk Road Writer
Vignesh has been a seasoned professional in the crypto space since 2017. He has been writing for over 5 years and specializes in writing and editing various types of crypto content, including news articles, long-form pieces, and blog posts, all focused on sharing the beauty of blockchain and crypto.