Bitcoin on track to break record for consecutive weeks of growth. JPM is betting on ETH in 2024.

Bitcoin price has been climbing for eight weeks in a row. The last time such a phenomenon occurred was in 2017, 2015 and 2013. Currently, the bitcoin price is only 2% below the opening price of the week. This means that if the bitcoin price increased by more than 2% by Sunday, it would set a new record for consecutive weeks of growth.

60% in eight weeks

The above-mentioned bitcoin price rally began in mid-October, when quotations moved from around USD 27000 to levels above USD 40000. So in eight weeks the rate of return is 60%. If this week also ended with an increase in the rate, it would be increased. Meanwhile, from the bottom after the collapse of the FTX exchange (November 2022) Bitcoin price increased by over 180%.

Important liquidity for the crypto market

We have been observing the beginning of the last phase of the bitcoin price increase since the beginning of December. This can be associated with a significant decline in reverse repo transactions, which increased liquidity in the financial market. Interestingly, yesterday we observed the largest decline in reverse repo since December 1... If this analogy is to be maintained, the price of bitcoin and other cryptocurrencies may also increase this weekend and in the following days.

Currently, the key support level for quotations may be around USD 41400, and resistance may be around USD 45000. However, defeating it could mean an attempt to create a price increase even towards USD 51000, where there are longer-term resistance zones.

ETH vs BTC

According to JP Morgan analysts, Ethereum (ETH) has a chance to surpass Bitcoin (BTC) in 2024, mainly due to planned network improvements. A key factor expected to contribute to Ethereum's rise is the upcoming network update known as EIP-4844. This update, planned for the first half of 2024, aims to significantly increase the activity of the Ethereum network. It will introduce a new type of transaction that will contain a large piece of data. This is intended to improve network scalability, offering a more cost-effective solution than similar amounts of data in other transactions. This change will be particularly beneficial for Layer XNUMX networks such as Arbitrum and Optimism, as it will enable increased network capacity and lower transaction fees.

Regarding bitcoin, analysts JP Morgan they maintain a cautious attitude. They note that potential factors favoring the increase in Bitcoin's value, such as potential approvals ETFs on the spot market and the halving event expected in 2024 (reduction of mining rewards) may already be included in the current bitcoin price. After the previous ones halvings the price of bitcoin relative to production costs was falling, which may suggest a similar trend after the halving in 2024.

Overall, JP Morgan's 2024 forecasts point to Ethereum potentially overtaking Bitcoin, largely due to the upcoming network upgrade.