JPMorgan Says BTC, ETH Continue To Face Major Challenges

JPMorgan says BTC, ETH continue to face major challenges as Bitcoin is still 5 times more volatile than gold. Ethereum on the other hand will continue to face competition from major rival blockchains so let’s read further in our latest cryptocurrency news.

JPMorgan analysts said that BTC will struggle to get institutional adoption because of the volatility while ETH will face more competition from other rival blockchains. JPMorgan says that they saw major challenges going forward for the two biggest cryptos by market cap. The note also said that the crypto market price dip looks like less capitulation relative to last May when the prices shed billions:

“We think the biggest challenge for Bitcoin going forward is its volatility and the boom and bust cycles that hinder further institutional adoption.”

It added that Bitcoin which is down by 44% from its all-time high, it is trading at $38,449 which makes it five times more volatile than gold. Most crypto investors claim that BTC works as a form of digital gold which means that it serves as a hedge against inflation such as the precious metal. The analysts noted that the ETH competitors Terra, Solana, Binance Smart chain, and others are gaining traction in teh DEEFI space and NFTs.

DEFI refers to the apps that aim to automate what banks do when using the blockchain networks and such apps are usually built on ETH network but because so many people use it, it became quite expensive and slow. Other blockchains popped up to compete with ETH and JPMorgan analysts noted that they are going well. The note said:

“What has been striking during this month’s correction is that Ethereum has not managed to re-capture market cap share vs. its main competitors as its price declined by a similar magnitude to smaller altcoins.”

NFTs are digital tokens that can represent anything from video clips, music, art that exist on the Etheruem network but now other networks such as Solana joined in. Solana’s network is popular because it is much cheaper and faster. NFT collectors are looking to use it to trade NFTs. Solana has its own share of problems as it often suffers from network congestion and outages. The network went down for 17 hours recently but the SOL token price remains resilient under $100 and remains the seventh biggest crypto by market cap.