JPMorgan says ether and altcoins won't catch up to bitcoin without a major network boom

The bank said ether and the broader altcoin market continue to trail bitcoin as weak network activity, sluggish DeFi growth and limited real-world adoption weigh on investor demand.

CoinDeskMay 191 min readVerified

JPMorgan says ether and altcoins won't catch up to bitcoin without a major network boom — Image · CoinDesk

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The bank said ether and the broader altcoin market continue to trail bitcoin as weak network activity, sluggish DeFi growth and limited real-world adoption weigh on investor demand.

The bank said ether and the broader altcoin market continue to trail bitcoin as weak network activity, sluggish DeFi growth and limited real-world adoption weigh on investor demand.

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Skip to main contentCrypto NewsMay 19, 2026, 9:59 a.m. EDT2 min readEther, altcoins likely to keep lagging bitcoin without real utility growth, JPMorgan says. (Unsplash)SummaryJPMorgan said ether has underperformed bitcoin in both price action and institutional flows since the October 2025 deleveraging event. Upcoming Ethereum upgrades may improve scalability, but past upgrades failed to materially boost onchain activity. Altcoins other than ether continue to suffer from weak liquidity, shallow market depth and fading confidence after years of hacks and stalled DeFi growth, the bank said.Ether ETH$2,490.55 and the broader altcoin market are unlikely to reverse a multi-year trend of underperformance against bitcoin BTC$84,459.46 without meaningful improvements in network activity, decentralized finance (DeFi) adoption and real-world use cases, JPMorgan said in a report last week.Cryptocurrency markets have struggled for much of the past six months as rising interest rates, persistent inflation concerns and weak risk appetite weighed on digital assets. Bitcoin and ether both saw sharp drawdowns earlier this year alongside heavy exchange-traded funds (ETFs) outflows and broader deleveraging across the sector."Both ether and other altcoins have been underperforming bitcoin despite the crypto market recovery since the Iran conflict," wrote analysts led by Nikolaos Panigirtzoglou.The analysts pointed to ETF flows as evidence of the divergence, noting that spot bitcoin ETFs have recovered roughly two-thirds of prior outflows, while spot ether ETFs have recovered only about one-third.Momentum traders, including commodity trading advisors (CTAs) and crypto quant funds, also remain slightly underweight both bitcoin and ether, the report said, suggesting speculative investors have yet to rebuild sizable long positions.Still, crypto prices have stabilized somewhat since the outbreak of the Iran conflict, with investors drawn to the market’s round-the-clock liquidity and signs of renewed institutional demand. Bitcoin and ether have at times outperformed equities and other risk assets during the conflict, even as volatility remains elevated.Upcoming Ethereum upgrades, including Glamsterdam and Hegota in 2026, are designed to improve scalability and lower transaction costs. But the bank's analysts cautioned that previous upgrades failed to drive stronger onchain activity. Instead, earlier upgrades reduced Layer 2 costs and network fees, weakening Ethereum’s token burn mechanism and increasing net supply, which undermined price support.Other altcoins have also underperformed bitcoin since 2023 because of tighter liquidity conditions, weaker market depth and breadth, limited DeFi growth and repeated hacks and security breaches that have eroded investor confidence, the report added.Repeated hacks and security breaches continue to weigh on crypto markets by undermining investor confidence, draining liquidity and slowing institutional adoption. High-profile exploits in DeFi and across trading platforms have triggered capital outflows and raised concerns about the reliability of blockchain infrastructure, particularly for altcoins and decentralized applications.Read more: Bitcoin faces outsized quantum threat as computing breakthroughs accelerate, Citi saysAI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk's full AI Policy.Related Assets12345678910

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Bitcoin stabilizes near $63,000, but reclaiming $64,000 is the real test Bitcoin is stabilizing near $63,100 after buyers defended the lower part of its recent range. That is constructive, but it is not yet a confirmed recovery. BTC must first overcome resistance near $63,175-$63,270, while reclaiming and holding $64,000-$64,095 remains the more important test. Key takeaways for Bitcoin traders and investors Current position: BTC is holding above the previous month’s lower value boundary near $62,380. Immediate resistance: Buyers need to clear $63,130-$63,175, followed by $63,247-$63,270. Main recovery test: A sustained reclaim of $64,000-$64,095 would carry much more weight than a temporary bounce near $63,000. Major support: The broader $62,380-$62,535 region remains the most important defended zone. Bullish confirmation: Repeated closes, consolidation or a successful retest above $64,095 would show that Bitcoin is beginning to establish higher accepted value. Data note: The latest daily, four-hour and one-hour candles were incomplete when this analysis was prepared. Exchange-specific Bitcoin prices may also differ slightly. I'm also closely monitoring the digital asset space after , putting immediate pressure on lower order-flow shelves as bulls fight to defend structural trendlines. Regulatory headwinds also resurfaced as the , injecting fresh institutional hesitation into active trading books. Meanwhile, broader risk sentiment showed divergence across asset classes as , underscoring rotational breadth away from mega-cap tech into small-cap momentum. Macro headwinds and geopolitical posturing remain front and center following headline chatter that , all while monetary policy uncertainty lingers after amidst baseline model variances. Why Bitcoin’s stabilization is constructive but incomplete Bitcoin recently fell to approximately $62,535, where the decline attracted meaningful buying. Price subsequently recovered toward $63,100, strengthening the case that buyers are willing to defend the lower part of the previous month’s trading range. What stands out to me, however, is how little upward progress followed that buying. Several periods showed positive buying pressure, but BTC remained concentrated around $63,050 and repeatedly struggled to extend beyond $63,150-$63,175. In simple terms, buyers have shown that they can slow the decline, but they have not yet shown that they can move Bitcoin into a clearly higher trading range. This is the difference between stabilization and recovery: Stabilization means sellers are no longer pushing price lower with the same ease. Recovery means buyers are lifting price, holding above resistance and shifting the market’s most active trading area higher. Bitcoin has shown the first condition. The second still needs confirmation. Why $62,380 and $64,095 matter The previous month’s value area provides a useful map of where most Bitcoin trading took place: Value Area Low near $62,380: The lower boundary of the previous month’s heavily traded range. Point of Control near $64,095: The price that attracted the most trading activity during the month. Value Area High near $65,050: The upper boundary of the previous month’s accepted range. BTC is currently about $720 above the monthly Value Area Low, but almost $1,000 below the monthly Point of Control. Holding above $62,380 tells us that demand inside the previous month’s range has not completely failed. Remaining below $64,095 tells us that buyers have not regained control of the broader value structure. This is also why $64,095 may be more important than $64,000 itself. The round number attracts attention, but $64,095 represents the previous month’s busiest price area. A brief move above $64,000 could still become another failed breakout. Holding above $64,095 would provide stronger evidence that the market is accepting higher prices again. As discussed in our previous analysis, Bitcoin’s created technical repair work for buyers. That repair is not complete simply because BTC has bounced from $62,535. Bitcoin support and resistance levels to watch What would strengthen the bullish Bitcoin scenario? Swing traders should have 3 key price levels: The Value Area Low (VAL), Point of Control (POC) and Value Area High (VAH) of the previous month. Together, these levels map the previous month’s main area of accepted trading: the VAL marks its lower boundary, the VAH its upper boundary, and the POC the price where the most volume traded. Traders watch them because holding inside the area suggests continued acceptance, while a sustained break outside it may signal that the market is searching for a new value zone. The first constructive step would be sustained trade above $63,175. Buyers would then need to clear and hold above $63,247-$63,270. That would improve the probability of a move toward $63,350 and, eventually, the much larger $64,000-$64,095 test. A more convincing recovery would include: Bitcoin reclaiming $64,000. Price moving above the monthly point of control near $64,095. A pullback successfully defending the reclaimed area. Trading activity beginning to concentrate above $64,095 rather than immediately slipping back below it. If that sequence develops, approximately $65,050 becomes the next major value-area objective. What this means: Acceptance is more than touching a level. It means price spends time above it, survives pullbacks and begins treating the higher area as support. What would weaken the stabilization attempt? Failure to hold $62,920-$62,800 would weaken the current short-term base and increase the probability of another test of $62,535. The more serious bearish development would be sustained trade below $62,380. That would place BTC outside the previous month’s accepted value area and suggest that the market may need to search for demand at lower prices. Traders should still distinguish between a brief move below $62,380 and genuine acceptance beneath it. Crypto markets can produce fast stop-runs through visible support before reversing. Repeated closes or continued trading below the level would carry more bearish significance than a momentary sweep. What Bitcoin traders may consider watching Different traders may use these levels in different ways, at their own discretion: Short-term breakout confirmation: Watch whether BTC can break above $63,175 and successfully retest it, with $63,247-$63,270 providing the next validation area. Support-zone reaction: If BTC returns to $62,380-$62,535, watch whether buyers defend it again or whether selling begins to hold below the zone. Broader recovery confirmation: Treat $64,000-$64,095 as the decisive recovery test instead of assuming that every bounce from $63,000 marks a durable bottom. Because Bitcoin trades continuously, weekend conditions can sometimes involve thinner liquidity and less reliable breakouts. Confirmation through time, repeated closes or a successful retest may therefore be more useful than reacting to the first price spike. What should Bitcoin traders watch next? Bitcoin has defended the lower part of the previous month’s value area, but the rebound still needs to prove itself. The immediate challenge is to move beyond $63,175 and $63,270. The much larger test remains $64,000-$64,095. A successful reclaim would indicate that Bitcoin is returning toward the center of the previous month’s accepted value rather than merely bouncing from support. Until that happens, Bitcoin may be stabilizing, but it is not yet showing a fully confirmed bullish recovery. This analysis presents conditional market scenarios and opinions (not promises) at investingLive.com, not a guarantee of future performance. Traders should consider volatility, position size and their own risk limits before acting. This article was written by Itai Levitan at investinglive.com.

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