JPMorgan sees “significant upside” to the price of bitcoin. The global investment bank’s price target for the cryptocurrency is 28% above its current price. JPMorgan has also replaced real estate with cryptocurrencies as its “preferred alternative asset class along with hedge funds.”
JPMorgan’s Bitcoin Price Target Is 28% Above Current Price
JPMorgan is a global bank that invests in cryptocurrency and bitcoin. They published a bullish statement on Wednesday. The bank’s strategists, including Nikolaos Panigirtzoglou, wrote that their price target for bitcoin remains at $38,000, “implying significant upside for digital assets from here.”
Bitcoin is currently trading at $297874 as of the writing. This represents a 2.4% drop over the previous seven days, and almost 25% in the last thirty days. JPMorgan’s fair value estimate for bitcoin is nearly 28% higher than the current price of BTC.
JPMorgan’s strategists detail:
The past month’s crypto market correction looks more like capitulation relative to last January/February and going forward we see upside for bitcoin and crypto markets more generally.
While the investment bank’s price target for bitcoin is $38K, its strategists have said that their long-term theoretical target price for the cryptocurrency is $150K.
Crypto Becomes JPMorgan’s Preferred Alternative Asset Class, Replacing Real Estate
In addition, the global investment bank now sees cryptocurrencies as its “preferred alternative asset class,” replacing real estate amid soaring mortgage rates.
JPMorgan stated that cryptocurrency suffered more from the market crash than any other investments such as real estate.
These strategists observed that crypto is more likely to recover from this trend and wrote:
Digital assets are our preferred asset class, along with hedge funds. We have thus replaced real property with digital ones.
Following a huge sell-off of the cryptocurrency market due to the collapse of crypto terra (LUNA), and algorithmic stablecoin terrausd UST (UST), the JPMorgan note was issued.
According to the strategists, while many investors have lost faith in crypto due to the collapse of two cryptocurrency coins, it is not clear that the pace of venture capital investment into crypto has slowed down.
Coincidentally Andreessen Horowitz, a major VC firm (a16z), announced Wednesday that it launched its $4.5 billion cryptocurrency fund.
What do you think about JPMorgan’s bitcoin price prediction and the bank replacing real estate with crypto as its preferred alternative asset class? Please leave your comments below.
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