JP Morgan maintains cautious view on crypto asset market in 2024 | CoinDesk JAPAN

Wall Street financial giant JPMorgan has expressed a cautious view on the cryptocurrency market in 2024, but an upgrade to increase the scalability of the Ethereum blockchain will make Ethereum (ETH) a bit more We believe that it will surpass Coin (BTC) and other crypto assets.

A decision by the U.S. Securities and Exchange Commission (SEC) on whether to approve a Bitcoin exchange-traded fund (ETF) is unlikely to spur a major rally, JPMorgan said in a Dec. 13 report. Stated.

Analysts led by Nikolaos Panigirtzoglou wrote, “If the SEC approves a Bitcoin spot ETF early next year, there will likely be a case of ‘buy on rumors, sell on facts.’” ing.

“With SEC approval of a Bitcoin spot ETF on the horizon, excessive optimism by crypto investors is shifting Bitcoin to overbought levels seen in 2021.” JP Morgan said, adding that a Bitcoin halving event in 2024 is “mostly priced in.”

Ethereum, on the other hand, looks set to shine with the EIP-4844 upgrade, or “proto-dunk sharding.” This is an evolution of sharding (dividing the network into shards to improve transaction speed) and uses dunk sharding, which uses shards to increase space for data groups. Proto Danksharding adds a new transaction type to Ethereum, the “blob carrying transaction.”

JPMorgan notes that while there will be some “reinvigoration” in venture capital (VC) funding in the fourth quarter of 2023, it looks “quite tentative.”

Although there has been some improvement in decentralized finance (DeFi) activity, “the biggest disappointment is that DeFi continues to be unable to penetrate the traditional financial system. This is necessary to move to global applications,” the report added.

｜Translation: CoinDesk JAPAN
｜Edited by: Toshihiko Inoue
｜Image: Shutterstock
｜Original text: JPMorgan Is Cautious About Crypto Markets Into 2024