JPMorgan: Ethereum is starting to outperform Bitcoin - Kakiforex | Forex markets for the smart money. JPMorgan: Ethereum is starting to outperform Bitcoin JPMorgan: Ethereum is starting to outperform Bitcoin

April 30, 2021

JPMorgan: Ethereum is starting to outperform Bitcoin

 Bitcoin is clearly losing popularity among market participants. Those who wanted to buy bitcoin have already done so for a long time, but there are not many new buyers now. Therefore, bitcoin can not resume the upward trend yet. But on the heels of it comes Ethereum, which more and more experts call the true single digital currency for the whole world. According to experts of the JPMorgan bank, in April, the price of Ethereum increased by 41%, while bitcoin fell by 8%, which in itself is very strange because it was bitcoin that pulled the cryptocurrency market earlier, either up or down. Now, we are watching the process of becoming independent of Ethereum. The bank's experts conclude that the first cryptocurrency is perceived by the community more as a means of saving or investment tool, but Ethereum is often used as a unit of exchange. Therefore, if we talk about digital currencies as digital currencies, Ethereum is more likely to fall under this definition now. It is much cheaper and its popularity continues to grow, in contrast to the losing position of bitcoin. "Ethereum should outperform bitcoin in the long run," JPMorgan said. The bank's experts also note that Ethereum proved to be more resistant to the liquidity shock that emerged last week in the derivatives market. The bank also believes that Ethereum is less dependent on leverage and has a stronger demand base than bitcoin.


Meanwhile, new legislation has been passed in Germany that will allow funds to invest up to 20% of their total assets in bitcoin from July 1. This decision will apply to closed-end institutional funds, insurance companies and pension funds. It is reported that at the disposal of all the above categories of funds, 1.2 trillion euro is currently concentrated. Potentially, 20% of this amount can flow to the cryptocurrency market, or rather to the bitcoin segment. Thus, if the funds themselves want to invest in such volumes in bitcoin, this may mean a potential new round of the upward movement of the first cryptocurrency. On the other hand, it is unlikely that German funds, which have always been distinguished by their caution and pedantry, will invest 20%. Most likely, it will be about 1-2% at first, so the bitcoin segment may not even notice such investments.


Analysts' opinions on the future prospects of bitcoin were divided. We would say that now about 50% of experts believe that bitcoin will continue to grow in the near future, and 50% believe the opposite. Thus, no matter how you look at it, there is still no clear trend at this time.