JPMorgan says altcoin underperformance vs. BTC is unlikely to change

JPMorgan has analyzed that despite a general recovery in the cryptocurrency market, altcoins, including Ethereum (ETH), are underperforming relative to Bitcoin (BTC), a trend the bank believes is unlikely to change soon. In a recent report, JPMorgan stated that the trend of altcoin weakness against Bitcoin, which began in 2023, will likely persist without significant improvements in the DeFi and Real World Assets (RWA) sectors, The Block reported. The bank noted that Bitcoin has demonstrated greater resilience than Ethereum across all areas, from spot ETFs to institutional futures positions. JPMorgan also pointed out that while Ethereum has an upgrade scheduled, previous upgrades over the past three years have failed to boost network activity and have instead weakened its token burn mechanism. The report concluded that altcoins will likely continue to struggle amid deteriorating liquidity, a lack of market depth, and damaged investor confidence.