By Hassan Mehmood (Saudi Arabia)
JP Morgan is an American investment banking company. The financial corporation is considered to be the biggest institutional advisor in the world. The investment behemoth has recently issued a shocking projection about the Ethereum blockchain. The company claims that Bitcoin is more suited as a store of value and is treated by the investors as a trading commodity. However, Ethereum serves in a multi-purpose dimension in the crypto market.
It is not a mere digital token but also useable as an exchange and ecosystem for many others. Nevertheless, Bitcoin is the beacon cryptocurrency that introduced the innovative fintech mechanism in the investment markets. Following the example of Bitcoin, countless cryptocurrency projects have emerged in the markets that have contributed to raising the level of the aggregate market cap of the crypto space to $2 trillion.
Ethereum Reached New All-Time High
Despite the current depression of the crypto and stock markets, Ethereum managed to score a new ATH of $2,735. On the other hand, Bitcoin has continued to carry on at a relatively slow pace. The flagship cryptocurrency has indeed managed to recover from a nosedive of $48K. However, its daily trading volume is at an all-time low for many years.
JP Morgan analysts are arguing that in comparison to Bitcoin, ETH has managed to get out of the price devaluation, which highlights the higher liquidity prospects in the futures markets. The banking giant is certain that Ethereum’s DeFi capabilities are a great structure that would lead it faster and allow it to outrun Bitcoin in terms of market cap and price appreciation.
JP Morgan Analyst is Getting off the Bitcoin Fintech Boat
Nikolaos Panigirtzoglou, a renowned JP Morgan Chase strategist, told Bloomberg earlier this week that the Bitcoin market is expected to dwindle after some time. Panigirtzoglou believes that the Bitcoin market is slowly moving towards a full stop, and institutional investors have started to lose interest in it. He also said that if Bitcoin is unable to get to a stable position of $60,000, its future would be endangered.
He attributes this diminishing trend with rapidly increasing Bitcoin futures liquidity readings. Unlike the past bull runs, the bank strategist added that Bitcoin would not be able to recover from its current price dive since the institutional inflows are dwindling. Meanwhile, important figures like Peter Brandt and Bill Miller have claimed that Bitcoin is expected to go higher and have rejected the Bitcoin bubble theories.
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