(Markets Insider) JPMorgan strategists have urged investors to prioritize Ethereum over Bitcoin holdings in the wake of looming interest hikes by global central banks.
JPMorgan says a hike in interest rates poses a challenge for Bitcoin, just the same as gold.
The bank’s strategist Nikolaos Panigirtzoglou says Ethereum is expected to benefit from more use scenarios such as non-fungible tokens and decentralized finance.
The strategist also believes the environmental concerns in investing is giving Ethereum an edge over Bitcoin.
JPMorgan still reads overvaluation in Bitcoin and Ethereum as they remain highly volatile to institutional investors.
Bitcoin has flourished in the ultra-low interest rate and bond-buying, with investors looking at it as a digital gold and a store of value. Ethereum’s boom is connected to its applications and is less vulnerable to shifts in rates.
BTCUSD is down -0.75%, ETHUSD is down -1.61%.
