215
Views
0 CommentsJPMorgan Chase & Co., an American multinational investment bank, believes that the world’s biggest cryptocurrency, Bitcoin, is 28% below its “fair price,” implying signs of “significant upside from here.” Bitcoin has also replaced real estate as one of JPMorgan’s preferred “alternative assets.”
According to a note released on May 25, JPMorgan believes that cryptocurrencies like Bitcoin have replaced the traditional real estate investment market as one of its preferred “alternative assets.” The firm added that there is a significant potential that Bitcoin will go higher from here after the massive sell-off in the past few weeks.
“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,” the bank’s strategists led by Nikolaos Panigirtzoglou wrote.
Noteworthy, the banking firm also wrote that they have replaced “real estate with digital assets as our preferred alternative asset class along with hedge funds.”
JPMorgan stuck to its belief that the ideal price of Bitcoin is around the $38,000 price region, which means that an aggregate of 28% surge in prices will put BTC back to its “fair price.”
Interestingly, JPMorgan CEO, Jamie Dimon, is renowned as a Bitcoin skeptic at the same time. Speaking last October at a virtual event hosted by the Institute of International Finance, Dimon said he personally sees Bitcoin as “worthless.”
However, his firm gave wealth management clients access to cryptocurrency funds last summer, which means the bank’s financial advisers can accept, buy and sell orders from clients for five cryptocurrency products.
Also, JPMorgan recently supported Ethereum, which it believes is a much better investment than Bitcoin.
“With Ethereum deriving its value from its applications, ranging from DeFi to gaming to NFTs and stablecoins, it appears less susceptible than bitcoin to higher real yields,” the bank’s analyst said.
