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JPMorgan analysts prefer Ethereum over Bitcoin

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Both Bitcoin (BTC) and Ethereum (ETH) have remained on top among the plethora of cryptocurrencies in the market today. The community is aware of the competition between these two as this has put would-be investors in quite a predicament as to which digital asset they would splurge their money on.  

Sure, both coins have their competitive qualities, though financial services giant JPMorgan favored the latter over the former and advised investors to grab ethereum especially now that interest rates are blowing up.  

A group of analysts from the said financial firm led by market strategist Nikolaos Panigirtzoglou stated in a recent report that the surging interest rates could be an issue for bitcoin which is similar to what they’re doing for gold.   

ALSO READ – BITCOIN AND ALTCOINS WILL BREAK OUT BULLISHLY NEXT WEEK

Bitcoin woes  

For the uninitiated, the king coin had its heyday in the time when interest rates were way low paired with widespread purchasing of bonds that is said to have filled the markets with cool cash and raised worries about it overheating. Additionally, the majority of crypto folks deem bitcoin as digital gold, not to mention a hedge in battling inflation.  

Nonetheless, central banks of different countries are cutting back their support for economies hoping to cool off inflation. The Bank of England Thursday stated that interest rates would need to rise in the upcoming months. The Federal Reserve, on the other hand, has recently cut back its $120 billion a month of bond purchases.  

Ethereum gains  

As for Ethereum, its network is central within the decentralized finance (DeFi) arena, which is described as a “booming sector” that utilizes crypto technology to process traditional financial tasks like trading or lending. Moreover, it is also at the center of nonfungible tokens (NFTs) that are items which are very much collectible digital items that are traded, minted, and secured through the help of crypto tech.  

Panigirtzoglou also noted in the report that with Ethereum getting its value from stablecoins, DeFi, and gaming NFTs, it looks like it is less susceptible to what is called higher real yields.   

At the time of writing, Ethereum’s price was at $4,595.43. It was up by 4.14% in the 24-hour period with a 24-hour trading volume of $13,79,62,36,740.  

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