- Most JPMorgan clients have said they expect Bitcoin to appreciate 50% of the current price by the end of the year.
- JPMorgan analyst Kenneth Worthington said he considers Bitcoin not as valuable as Ethereum.
Bitcoin (BTC) is not off to a good start in 2022, as the world’s largest cryptocurrency has lost more than 10% so far this year. The cryptocurrency performed unsatisfactorily for all those who hoped to reach the $ 100,000 levels by the end of 2021.
JPMorgan clients recently kicked off a new price target for Bitcoin for the year 2022. In a recent report, the largest banking institutions in the United States asked their clients where they see Bitcoin in late 2022. Based on the results, almost 41 percent of customers believe that Bitcoin could be trading at $ 60,000 or more by the end of the year. This is still 50 percent higher than current levels and more than other asset classes can offer.
It’s a mixed bag of many views though! Another 23 percent of JPMorgan customers believe BTC will be available at a 50 percent discount from current levels, or $ 20,000. While another 20 percent believe Bitcoin will trade fairly at $ 40,000. Only 5 percent believe that Bitcoin will trade above the $ 100,000 levels.
Bitcoin has less value than Ethereum
Kenneth Worthington, a financial analyst at JPMorgan, said he thinks Bitcoin is not as valuable as Ethereum. He also argues that the second largest cryptocurrency platform in the world, Ethereum, has a better use case compared to Bitcoin.
Worthington is not the first to share this view. Many market analysts consider Ethereum more attractive because of the technological capability it offers. The ability to host multiple smart contracts, multiple DApps, DeFi apps, NFTs, and much more promotes Ethereum technology.
But some market analysts also argue that Bitcoin and Ethereum are not competitors at all. Many consider Bitcoin as digital gold and see it as a store of value. On the other hand, they view Etheruem as a fintech platform heading into the FinTech revolution of the next decade.
As a result, many also believe that Ethereum could turn Bitcoin upside down in the future. In fact, Shark Tank investor Kevin O’Leary also believes that the entire NFT ecosystem will outnumber Bitcoin. In one of his recent interviews with CNBC, O’Leary said:
You will see a lot of movement in the making of authentication and insurance policies and all property transfer taxes online in the coming years, making NFT a much larger market, which may be more fluid than bitcoin.
Bitcoin short term
After six consecutive days of moving down, Bitcoin managed to bounce from the support levels of $ 40,000 on Monday, January 10th. At press time, Bitcoin was trading at $ 41,884 with a market capitalization of $ 792 billion.
Bitcoin is still trading well below its 50- and 200-day moving averages and needs to claim its first resistance at $ 43,500 for any continued move to the upside. In addition, Bitcoin is showing weakness on technical charts. On the downside, Bitcoin can still break below $ 40,000 to get its next support at $ 38,000.