There have been a lot of optimistic predictions about the price of digital assets these days and Ethereum has been making headlines all over the place.
Ethereum is a better investment than Bitcoin
Now, it’s been revealed that banking giant JPMorgan said that Ethereum (ETH) is a better bet than Bitcoin (BTC) this market cycle.
Business Insider reported that analysts from JPMorgan say the Federal Reserve’s plans to raise interest rates could spell trouble for Bitcoin.
The online publication the Daily Hodl noted that the Bank of England said that interest rates would have to rise over the coming months. “The Fed reportedly will begin tapering its $120 billion per month spending on bond purchases,” the notes say.
The same notes stated that market strategist Nikolaos Panigirtzoglou says that the downward pressure being put on BTC and typical inflation hedges like gold make ETH a more attractive investment.
This is due to its high number of decentralized applications and use cases.
“The rise in bond yields and the eventual normalization of monetary policy is putting downward pressure on Bitcoin as a form of digital gold, the same way higher real yields have been putting downward pressure on traditional gold.”
The same notes reveal the following:
“With Ethereum deriving its value from its applications, ranging from DeFi to gaming to NFTs and stablecoins, it appears less susceptible than Bitcoin to higher real yields.”
The analysts from the bank say that EtH could turn out to be the better long-term bet as environmental concerns continue among investors.
“The greater focus by investors on [environmental, social and governance investing] has shifted attention away from the energy-intensive Bitcoin blockchain to the Ethereum blockchain.”
Regarding the price of ETH these days, at the moment of writing this article, ETH is trading in the red and the coin is priced at $4,398.