The price of bitcoin, according to JPMorgan, has "huge potential." The cryptocurrency's price objective is 28 per cent higher than it is now, according to the global investment bank. Cryptocurrencies have surpassed real estate as JPMorgan's "favourite alternative asset class," along with hedge funds.
JPMorgan's Chase & Co. issued a bullish commentary on bitcoin and cryptocurrency on Wednesday. According to the bank's experts, including Nikolaos Panigirtzoglou, the price target for bitcoin remains around $38,000, signalling "considerable potential for digital assets from here."
Bitcoin is currently trading at $29,784, down 2.4 per cent in the previous seven days and nearly 25 per cent in the last 30 days. The fair value estimate for bitcoin by JPMorgan is roughly 28% more than the current price.
According to the JPMorgan analysts, "The recent crypto market collapse appears to be more of a capitulation than the one that occurred in January/February of last year," and "Moving forward, we see bitcoin and crypto markets in general as having a lot of promise."
While the investment bank's bitcoin price objective is $38,500, its strategists have stated that the cryptocurrency's long-term theoretical target price is $150,000.
Crypto Has Replaced Real Estate as JPMorgan's Preferred Alternative Asset Class
Furthermore, in the face of rising mortgage rates, the global investment bank now considers cryptocurrency to be its "preferred alternative asset class."
The latest market collapse, according to JPMorgan, has harmed cryptocurrencies more than other potential investments, such as real estate.
The strategists stated, "We thus replace real estate with digital assets as our favoured substitute asset class, together with hedge funds," noting that this trend shows crypto has more space to rebound.
Following the collapse of cryptocurrency terra and algorithmic stablecoin terraUSD, the JPMorgan note triggered a significant sell-off in the crypto market.
While the spectacular drop of the two cryptocurrencies has affected the mindset of many crypto investors, the experts said that there has been little sign that venture capital investing in the crypto sector has slowed.
Andreessen Horowitz (a16z), a leading venture capital firm, announced the opening of its new $4.5 billion crypto fund on Wednesday.