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JPMorgan Analysts Share Key Predictions and Observations for 2024 Crypto Landscape
- JPMorgan anticipates Ethereum’s resurgence in 2024, driven by the EIP-4844 upgrade, which is expected to enhance network activity.
- Bitcoin’s positive factors for 2024, including the halving, are considered already priced in, according to JPMorgan analysts.
- Despite decentralized finance’s struggles, JPMorgan expresses cautious optimism regarding improved venture capital funding in Q4 2023, potentially signaling the end of the crypto winter.
JPMorgan analysts, led by Nikolaos Panigirtzoglou, are foreseeing a robust comeback for Ethereum in the upcoming year. As Panigirtzoglou states, “We believe that next year Ethereum will re-assert itself and recapture market share within the crypto ecosystem.”
This optimism is grounded in the anticipated EIP-4844 upgrade, or Protodanksharding, scheduled for the first half of 2024. According to Panigirtzoglou, “The main catalyst is the EIP-4844 upgrade or Protodanksharding, which is expected to take place during the first half of 2024. We believe that this upgrade will likely prove a bigger step towards improving Ethereum network activity, thus helping Ethereum to outperform.” Analysts are bullish on Ethereum’s potential, given the technological advancements this upgrade promises.
Bitcoin Halving Already Priced In, Says JP Morgan
JPMorgan analysts, including Nikolaos Panigirtzoglou, assert through a recent post that Bitcoin’s positive factors in 2024 are already accounted for in its current price. According to Panigirtzoglou, “And given the current ratio of the bitcoin price to production cost is around x2.0 at the moment, this would imply that the 2024 bitcoin halving event is largely in the price.”
This analysis is based on the existing bitcoin price to production cost ratio, approximately x2.0, suggesting that the impact of the 2024 halving is already reflected in the market. The discussion revolves around why JPMorgan holds the view that the upcoming halving is less likely to significantly influence Bitcoin’s market dynamics. Despite potential positive developments, the analysts maintain a cautious stance on crypto markets.
JPMorgan Deems DeFi’s Progress ‘Biggest Disappointment,’ Cautious Optimism in VC Funding
JPMorgan expresses disappointment in the decentralized finance (DeFi) sector’s struggle to penetrate traditional finance, hindering the broader crypto ecosystem’s transition. Despite this setback, there’s cautious optimism, as Panigirtzoglou mentions, “While venture capital funding in the crypto space in the fourth quarter of this year has improved compared to a rather subdued rest of the year, the improvement appears ‘rather tentative.'”
The disappointment stems from DeFi’s inability to make significant inroads into traditional finance. The examination of challenges includes the slow evolution of tokenization and the absence of regulatory frameworks. Despite these hurdles, there is a cautious outlook on the improved venture capital funding observed in Q4 2023. Analysts suggest that the persistence of this positive trend into Q1 2024 could signal the end of the crypto winter.
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