JPMorgan’s Insights on Bitcoin Price, ETH Surpassing BTC and the Rise of Bitcoin Spot ETF

In the fast-paced world of cryptocurrency, JPMorgan’s recent predictions and analyses have stirred significant buzz. The financial giant anticipates a shift in the crypto landscape, with Ethereum (ETH) poised to outperform Bitcoin (BTC) and other cryptocurrencies by 2024. This forecast is anchored in the forthcoming EIP-4844 upgrade and the introduction of Protodanksharding technology. Additionally, JPMorgan sheds light on the impact of Bitcoin halving and the challenges faced by the decentralized finance (DeFi) sector.

Read more: Decoding JPMorgan’s Anti-Crypto Stance: CEO’s Call for Government Intervention

JPMorgan's Insights on Bitcoin Price, ETH Surpassing BTC and the Rise of Bitcoin Spot ETF

ETH’s Ascendancy and Technological Upgrade:

JPMorgan analysts, led by Nikolaos Panigirtzoglou, project that Ethereum will reclaim its market share and exhibit stellar performance in 2024. The catalysts for this resurgence are identified as the EIP-4844 upgrade and the introduction of Protodanksharding technology, slated for the first half of 2024. The implementation of Protodanksharding represents a significant leap in Ethereum’s sharding capabilities, aiming for a more efficient and scalable network.

This technological advancement is particularly favorable for second-layer networks like Arbitrum and Optimism, offering additional temporary data space to enhance network throughput and reduce transaction fees on Ethereum’s second-layer networks.

Bitcoin Halving Effect:

JPMorgan’s analysts suggest that factors contributing to Bitcoin’s positive outlook in the coming year include the potential approval of a Bitcoin spot exchange-traded fund (ETF) and the upcoming halving. According to their analysis, the market price of Bitcoin has already factored in the effects of the 2024 halving, similar to the trend observed after the 2020 halving.

The analysts elaborate that the current ratio of Bitcoin price to production cost is approximately x2.0, indicating that the impact of the 2024 halving event will primarily manifest in the price.

Bitcoin Price: Cryptocurrency Venture Capital Prospects

DeFi’s Challenge and Tokenization’s Slow Progress:

Despite the rapid growth of the decentralized finance sector, JPMorgan analysts express reservations about its inability to penetrate traditional financial systems, labeling it the “biggest disappointment.” The report highlights that the most significant applications of blockchain in traditional finance, such as overnight repo transactions through smart contracts on platforms like Broadridge and JPMorgan, are occurring outside public blockchains.

Furthermore, the analysts note that the development of tokenization is progressing slowly, still largely in the experimental phase. Challenges such as fragmentation, a lack of cooperation and interoperability between platforms, delays in central bank digital currency launches by the Federal Reserve and the European Central Bank, and regulatory obstacles contribute to the cautious pace of tokenization.

Bitcoin Price: Cryptocurrency Venture Capital Prospects

While the fourth quarter of this year has shown an improvement in venture capital funding for the cryptocurrency sector compared to the rest of the year, JPMorgan analysts view this improvement as temporary. They suggest that if this positive trend continues into the first quarter of 2024, it could signal a significant milestone and potentially mark the end of the cryptocurrency winter.

Read more: Crypto Predictions for 2024: Binance Loses Dominance, Coinbase Surges and Bold Market Forecasts


JPMorgan’s insights paint a dynamic picture of the cryptocurrency landscape, with Ethereum poised for a resurgence, Bitcoin adapting to halving effects, and challenges persisting in the DeFi and tokenization domains. As investors navigate these developments, all eyes are on the future, eagerly anticipating the unfolding of these predictions in the ever-evolving world of digital assets.

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