JP Morgan Takes Cautious Stance on Crypto Bull Run in 2024
JP Morgan analysts have expressed a cautious outlook for the crypto market in their 2024 crypto outlook report. They believe that the Bitcoin halving event is already priced in and that the current price reflects a 5% drop in the post-halving hash rate, which they consider too low. The team anticipates a 20% drop in the hash rate and expects miners with higher overheads to exit the market. The report suggests that the 2024 halving is largely priced in, as Bitcoin’s current price is around twice the production cost.
Ethereum Potential and Concerns
The JP Morgan report also suggests that Ethereum could outperform Bitcoin in 2024 due to the EIP-4844 “Protodanksharding” upgrade. However, they raise concerns about centralization of staking on the Ethereum network. The report cautions against getting too excited about a revival of DeFi and NFT activity but acknowledges the rise of new DeFi chains and renewed interest in NFTs.
Skepticism Towards Bitcoin ETF Approval
The JP Morgan analysts express skepticism regarding the approval of a spot Bitcoin ETF bringing fresh capital to the market. They point to the lack of interest from investors in already-approved spot ETFs and suggest that capital would move from existing Bitcoin products, potentially putting downward pressure on Bitcoin’s price.
JP Morgan’s Negative Stance on Crypto
This JP Morgan report follows CEO Jamie Dimon’s recent comments where he criticized crypto during a Senate Banking Committee hearing. Dimon expressed opposition to crypto, claiming that its true use case is for criminals, drug traffickers, money laundering, and tax avoidance.
Hot Take: JP Morgan Remains Cautious About Crypto’s Future
JP Morgan analysts have taken a cautious stance in their 2024 crypto outlook, suggesting that the Bitcoin halving event is already priced in. They anticipate a significant drop in the hash rate and express concerns about the centralization of staking on the Ethereum network. The report also casts doubt on the potential impact of a spot Bitcoin ETF approval. These viewpoints align with CEO Jamie Dimon’s negative stance on crypto. Overall, JP Morgan remains skeptical about the future of cryptocurrencies.
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