In a bold prediction, JPMorgan, one of the world’s leading financial institutions, has suggested that Ethereum (ETH) could outperform Bitcoin (BTC) in the coming year. This forecast comes amid a period of significant volatility in the cryptocurrency market, with both Bitcoin and Ethereum experiencing substantial price fluctuations.
Ethereum, the second-largest cryptocurrency by market capitalization, has seen impressive growth, outpacing Bitcoin’s performance. JPMorgan analysts believe that if Ethereum maintains its current growth rate, it could surpass Bitcoin’s market cap, an event playfully coined as “the Flippening”.
In a report released on Wednesday, the U.S. Securities and Exchange Commission (SEC) indicated that the approval of spot Bitcoin exchange-traded funds (ETFs) is not expected to trigger significant increases. The SEC anticipates a potential “buy-the-rumor/sell-the-fact” scenario following the likely approval of these ETFs in the early part of next year.
JPMorgan noted that the crypto market’s heightened enthusiasm, driven by the prospective approval of spot Bitcoin ETFs by the SEC, has pushed Bitcoin into overbought territory, similar to levels observed in 2021. Furthermore, they stated that the market has largely factored in the Bitcoin halving event slated for 2024.
JPMorgan Highlights Ethereum’s Advantages
Ether is poised to benefit from the EIP-4844 upgrade, also known as proto-danksharding. This upgrade is an evolution of sharding, a process that divides the network into smaller parts, or shards, to enhance transaction speed. Danksharding takes this a step further by utilizing these shards to expand the capacity for data clusters. Proto-danksharding introduces a new type of transaction to Ethereum, known as the blob-carrying transaction.
At the time of writing, Ether trades at $2,281, reflecting a 5.0% rise in the past 24 hours. Concurrently, Bitcoin trades at $42,841, marking a 4.3% growth within the same period.
In conclusion, while JPMorgan’s prediction suggests a promising future for Ethereum, it also underscores the need for caution given the inherent volatility and unpredictability of the crypto market. As always, investors are advised to do their own research and consider their risk tolerance when investing in cryptocurrencies.