JPMorgan predicts Ethereum will fall behind Bitcoin
May 15, 2026
Recent market shifts in response to the escalating conflict in the Middle East have not changed the ongoing trend of Bitcoin outperforming Ethereum and other altcoins, according to analysts at JPMorgan. The latest report from the bank indicates that Bitcoin, often referred to as digital gold, is recovering at a faster pace compared to Ethereum and other alternative cryptocurrencies, particularly in the spot ETF segment and the futures market. Institutional investors are showing a stronger preference for Bitcoin, with inflows into Bitcoin funds compensating for a significant portion of recent outflows, while Ethereum ETFs have only managed to recoup a third.
The data also shows that open positions on the Chicago Mercantile Exchange (CME) for Bitcoin have returned to peak levels, suggesting a robust interest from institutional investors. On the other hand, interest in Ether remains relatively low despite the upcoming hard forks Glamsterdam and Hegota scheduled for this year. Analysts believe that these planned network updates may not be sufficient to reverse the current trend. Previous network upgrades implemented over the past three years have not resulted in a notable increase in user activity. In fact, these updates have led to a reduction in transaction costs for Layer 2 solutions, resulting in a decrease in burned fees and an increase in coin supply, which has put additional pressure on Ether’s price.
Furthermore, experts point out three main factors contributing to the weakness in the altcoin market since 2023. These factors include low liquidity, insufficient market depth, stagnation in the decentralized finance (DeFi) sector, and regular occurrences of hacks and security breaches. As a result, investor confidence in alternative cryptocurrencies has been significantly impacted, leading to a lack of new capital inflow into the ecosystem. JPMorgan analysts believe that without a significant surge in activity in real-sector applications and DeFi, the situation is unlikely to improve in the near future.
Despite Bitcoin reaching a price of $82,000 on May 11, traders are exercising caution, indicating a sense of uncertainty in the market. The overall sentiment continues to favor Bitcoin over Ethereum and other altcoins, reflecting the ongoing dominance of the leading cryptocurrency in the current market landscape. With institutional interest in Bitcoin remaining strong and the developments in the altcoin market facing significant challenges, the future trajectory of these digital assets remains uncertain.
