JP Morgan – one of the largest investment banks on Wall Street – maintains its previous fair value target for Bitcoin of $38,000, meaning the asset is currently trading at a discount. The bank believes that BTC could rally more than other battered assets as it fell much lower in the correction phase.
- JPMorgan holds Bitcoin’s fair value at $38,000, suggesting a potential upside of 28% for the primary cryptocurrency and is slightly below the $30,000 level.
- According to the bank’s note released Wednesday, the Wall Street giant said cryptocurrency is one of its preferred alternative assets to real estate and doesn’t fall into the same category as stocks and bonds.
- The giant’s strategies, led by Nikolaos Panigirtzoglou, see last month’s market correction as similar to January and February and thus predict a recovery rally in the crypto market could be just around the corner.
- Since bitcoin compared to last November ATH has dropped over 60% and the total cryptocurrency capitalization has fallen from $3 trillion to $1.3 trillion, the bank sees opportunities in the fast-growing asset class. Since it’s been hit harder than traditional assets like private equity and real estate, the bank stated “there’s more room for crypto to recover.”
- However, despite the recent catastrophe in Terra’s ecosystem, which may have painted a negative picture of the industry, strategists noted that there is little sign that VC funds have stopped pumping funds into space.
- In February, the investment bank set Bitcoin’s fair price at $38,000. The number was based on the premise that BTC is about four times more volatile than gold. Meanwhile, it increased its long-term price target to $150,000 from $146,000.
- If Bitcoin’s volatility could be reduced 3x from where it was in February, its fair value could reach $50,000.
Source: Crypto News Deutsch