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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:

  • JP Morgan CEO Dimon urges crypto ban: ‘I’d close It down’

This article was written by Eamonn Sheridan at www.forexlive.com.

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