JPMorgan believes that bitcoin’s price has a “significant upside”. The price target of the global investment bank for cryptocurrency is 28% higher than its current price. JPMorgan also has cryptocurrencies as its preferred alternative asset class to real estate, along with Hedge funds.
JPMorgan’s Bitcoin Price Target is 28% above the Current Price
JPMorgan, a global investment bank, published Wednesday a bullish note about bitcoin and cryptocurrency. Nikolaos Panigirtzoglou and other strategists from JPMorgan wrote Wednesday that the bank’s price target for bitcoin is $38,000. This “implies significant upside for digital assets.”
Bitcoin is currently trading at $297874 as of the writing. This is a 2.4% decrease over the past seven and nearly 25% over the last thirty days. JPMorgan’s bitcoin fair value estimate is almost 28% higher that the current price BTC.
The JPMorgan strategists described:
We see more upside for crypto markets and bitcoin in the future than we did last January/February.
The price target of bitcoin by the investment bank is $38K. However, the strategists of the bank have stated that the long-term theoretical target price is $150K.
Crypto Becomes JPMorgan’s Preferred Alternative Asset Class, Replacing Real Estate
The global investment bank also sees cryptocurrencies now as its preferred alternative asset class, replacing real estate amid skyrocketing mortgage rates.
JPMorgan stated that cryptocurrency suffered more from the market crash than any other investments, such as real estate.
The strategists noted that this trend implies that crypto has more potential to rebound.
As an alternative to hedge funds and real estate, we have replaced real estate with digital assets.
Following a huge sell-off in crypto markets amid the implosion cryptocurrency terra (LUNA), and algorithmic stablecoin terrausd UST (UST), the JPMorgan note was issued.
According to the strategists, while the collapse of both cryptocurrencies has hurt sentiment among crypto investors, there is little evidence that venture capital funding for the crypto sector is slowing.
Coincidentally Andreessen Horowitz, a major VC firm (a16z), announced Wednesday the launch its new crypto fund of $4.5 billion.
