The Wall Street weather vane. But what the hell is going on in the offices of JP Morgan Chase, at 383 Madison Avenue in New York? Suddenly, the investment bank is outright advocating the closure of cryptocurrencies (rather amusing concept) and a week later, in-house experts are predicting good performance for Ethereum in 2024! So yes, this is not necessarily contradictory. However, it is still difficult to follow the official policy of the centuries-old bank regarding cryptocurrency. EIP-4644, Protodanksharding, halvingSpot Bitcoin ETF, here is the latest analysis from financial specialists at the largest bank in the United States regarding the crypto market next year.
Investment banking analysts very bullish on Ethereum
The main idea of the team of experts led by Nikolaos Panigirtzoglou from JP Morgan is that Ethereum should “outperform Bitcoin and other cryptocurrencies in 2024”. The reasons given are multiple and the first is this:
“We believe that next year Ethereum will reassert itself and regain market share within the crypto ecosystem. The main catalyst is the EIP-4844 or Protodanksharding upgrade, which is expected to take place in the first half of 2024. We believe this upgrade will likely be a larger step towards improving Ethereum network activity, thus helping it to outperform. »
Experts from JP Morgan cited by the press – Source: The Block
The new network update should therefore be a performance catalyst for the second cryptocurrency on the market, find a complete article on the subject published in our columns a few weeks ago.
The other event which would herald a renewed interest in Ethereum is paradoxically the arrival of spot Bitcoin ETFs which, for J.P. Morganis already pricy by the market as they say in finance. That is to say, investors would have already anticipated the phenomenon in the current price of Bitcoin and will instead head towards its runner-up: Ethereum. In the same vein, the halving next spring will reduce the profitability of mining of bitcoins and could pull the price of BTC down, again according to JP Morgan.
JP Morgan Chase’s crypto policy rather difficult to follow!
These hypotheses only engage the bank’s experts, but they tend to justify better performance of Ethereum next year, when Bitcoin will therefore mark time a little. Finally, our analysts of the day conclude by noting that the Challenge is struggling to really take off, just like that of tokenization which remains in an experimental state:
“Tokenization is evolving rather slowly and remains at a largely experimental stage, hampered by fragmentation, lack of cooperation and interoperability between platforms, delays in the introduction of central bank digital currencies by the Fed and ECB and lack of regulation. »
Experts from JP Morgan cited by the press – Source: The Block
In conclusion, we learn that investments by venture capital professionals in the crypto industry are at a crossroads. The slight revival of interest observed at the end of this year is fragile and could collapse, but in the event that it continues in the first months of 2024it could be “the end of crypto winter”.
Well, JP Morgan sets major trends, but is still struggling to find official direction in terms of cryptocurrency! We will recall, just like that, the very latest statements from the bank’s CEO, Jamie Dimon, who spoke about Bitcoin and cryptos in these terms: “the only real use cases are for criminals, drug dealers, money laundering and tax evasion.” Before making the following wish: “If I were the government, I would close it all down”. The New York investment bank therefore continues to blow hot and cold while probably waiting to know where the wind will blow next year.