Ether underperformed Bitcoin in 2023: What’s next for the second largest cryptocurrency?
In 2023, Ether, the second largest cryptocurrency by market cap, underwent a period of underperformance compared to Bitcoin. However, analysts and traders are now predicting a potential resurgence for Ether in the coming year. Despite its recent setback, Ether still holds the position as the world’s leading smart contract blockchain. In a recent weekly newsletter, Coinbase stated that the Bitcoin ETF news from last week had a positive impact on Ether. The cryptocurrency briefly spiked above $2700, reaching its highest price since May 2022.
Analysts optimistic about Ether’s near-term future: Key upgrades and potential ETFs.
The recent positive developments for Ether have led analysts to be even more optimistic about its near-term future. One factor contributing to this optimism is the upcoming key upgrades lined up for Ether. These upgrades are expected to enhance its functionality and utility. Additionally, several firms behind the Bitcoin ETFs, such as Blackrock and Van Eck, are also considering launching Ether-based spot ETFs. This potential entry into the ETF market could further drive the demand and price of Ether in the coming months.
JP Morgan skeptical about spot Ether ETF approval: Lawsuits against crypto exchanges a challenge.
While there is optimism surrounding the potential for Ether-based spot ETFs, JP Morgan remains skeptical about the approval of such ETFs by the U.S. Securities and Exchange Commission (SEC). According to the investment bank, the probability of the SEC approving a spot Ether ETF by May is no more than 50%. JP Morgan points to ongoing lawsuits against crypto exchanges that offer staking services for proof-of-stake blockchains, including Ethereum. These lawsuits pose a challenge for the approval of a spot Ether ETF, as they raise regulatory concerns and potential risks associated with the crypto ecosystem.
Donald Trump’s latest NFT venture: Collectors can get a unique ordinal on the Bitcoin Blockchain.
Former US President Donald Trump has entered the NFT market with his latest venture. Trump’s NFT project announced on X that collectors who purchase 100 of his mugshot NFTs, priced at $99 each, will receive a unique card in the form of an ordinal on the Bitcoin Blockchain. The introduction of this NFT project by Trump demonstrates the growing popularity and adoption of NFTs by public figures and celebrities.
Buyer beware: Restrictions on trading ordinals and NFTs in Trump’s project until 2024.
While collectors may be excited about acquiring unique ordinals on the Bitcoin Blockchain through Trump’s NFT project, there are certain restrictions to be aware of. The thread on X revealed that owners of the ordinals and the 100 NFTs required to obtain the ordinal will not be allowed to trade these assets until December 2024. This limitation is intended to reduce their appeal as investment vehicles, emphasizing the project’s focus on collectibility rather than speculative trading. Nonetheless, this restriction may influence the decisions of potential buyers considering the resale value of the NFTs and ordinals.
Analyst comment
Positive news: Analysts and traders predict a potential resurgence for Ether in the coming year, with key upgrades and potential ETFs driving demand and price.
Neutral news: JP Morgan remains skeptical about the approval of spot Ether ETFs, citing ongoing lawsuits against crypto exchanges as a challenge.
Negative news: Restrictions on trading ordinals and NFTs in Trump’s project until 2024 may impact the decisions of potential buyers.
