Along with a “cautious” outlook for the crypto industry over the next year, JP Morgan predicted that Ethereum (ETH) will surpass Bitcoin (BTC) in 2024. Moreover, they made this forecast despite the approaching halving event, which will reduce the number of Bitcoin tokens in circulation.
JP Morgan stressed that “excessive optimism” could work against Bitcoin next year.
In addition, the institution’s analysts noted that the above-mentioned event of halving miner rewards is “largely priced into” the asset’s current value.
Therefore, they do not expect huge profits over the next year, Watcher.Guru reports.
Throughout much of 2022 and early this year, Bitcoin struggled to find its place in the mainstream.
Indeed, the entire industry has experienced a cryptocurrency winter, which has raised many concerns about its ability to recover.
Now that 2024 is a month away, the excitement around this asset has never been higher.
Anticipation of the potential approval of an exchange-traded fund (ETF, an exchange-traded fund that invests directly in cryptocurrency) and the future halving of rewards has led to optimism about its potential.
However, one bank is not so optimistic about the cryptocurrency’s overall positive performance over the next year.
Additionally, according to JP Morgan, Ethereum could become a more productive asset in 2024.
The bank’s forecast for next year is “cautious”, taking into account many factors.
In particular, they pointed to the potential for overexcitement to eventually work against Bitcoin.
Subsequently, this led to the asset being overbought in the market, which had already taken into account the upcoming halving event.