- A majority of the JPMorgan clients said that they expect Bitcoin to appreciate 50 percent from the current price by the year-end.
- JPMorgan analyst Kenneth Worthington said that he finds Bitcoin to be less valuable than Ethereum.
Bitcoin (BTC) hasn’t had a pretty good start to 2022 as the world’s largest cryptocurrency is already down more than 10 percent year-to-date. The cryptocurrency has delivered a dismal performance for everyone who was expecting it to touch $100K levels by the end of 2021.
JPMorgan clients have recently initiated a new target price for Bitcoin for this year of 2022. In a recent report, America’s largest banking institutions asked their clients where they see Bitcoin by the end of 2022. Based on the results, nearly 41 percent of its clients believe that Bitcoin could be trading at $60,000 or above by the year-end. This is still 50 percent higher than the current levels and more than what other asset classes can offer.
However, it’s a quite mixed bag of opinions! Another 23 percent of JPMorgan clients believe that BTC will be available at a 50 percent discount from the current levels i.e. $20,000. While another 20 percent believe that Bitcoin will be trading flat at $40,000. Only a mere 5 percent believe that Bitcoin will be trading above $100,000 levels.
Bitcoin less valuable than Ethereum
Kenneth Worthington, a financial analyst at JPMorgan, said that he finds Bitcoin to be less valuable than Ethereum. He also argues that the world’s second-largest crypto platform Ethereum has more superior use case in comparison to Bitcoin.
Worthington is not the first to share this view. Several market analysts find Ethereum to be more appealing due to the technological prowess it offers. The ability to host several smart contracts, multiple DApps, DeFi applications, NFTs and a lot more makes Ethereum technology advanced.
But some market analysts also argue that Bitcoin and Ethereum aren’t competitors at all! Many regard Bitcoin as Digital Gold and see it as a store-of-value. On the other hand, they see Etheruem as a financial technology platform catering to the FinTech revolution over the next decade.
As a result, many also believe that Ethereum could be flipping Bitcoin in the future. In fact, Shark Tank investor Kevin O’Leary also believes that the entire NFT ecosystem will be bigger than Bitcoin. In one of his recent interviews with CNBC, O’Leary said:
You’re going to see a lot of movement in terms of doing authentication and insurance policies and real estate transfer taxes all online over the next few years, making NFTs a much bigger, more fluid market potentially than just bitcoin alone.
Bitcoin in the short term
After six consecutive days of moving downwards, Bitcoin managed to bounce back from the $40,000 support levels on Monday, January 10. As of press time, Bitcoin was trading at $41,884 with a market cap of $792 billion.
Bitcoin still continues to trade still well below its 50-day and 200-day moving averages and it needs to claim its first resistance at $43,500 for any sustained move upwards. Besides, Bitcoin is also showing weakness on technical charts. On the downside, Bitcoin can still break below $40,000 to find its next support at $38,000.