JP Morgan endorses Bitcoin: price will increase by 28% and is one of its preferred alternative assets
By Noemi Jansana / Alejandra Zamora
Date: Thursday 26 May 2022
(Sharecast News) - The digital assets market continues to be hesitant to make significant moves for Bitcoin´s price (BTC) or 'altcoins', as investors wait for some significant catalyst to stamp some action on digital assets. During this impasse, there is no shortage of analysts claiming that the cryptocurrency is poised to break out to the upside above $30,000. The latest to launch a bullish bet on Bitcoin´s price are analysts at JP Morgan. The global investment bank's target for the cryptocurrency is 28% above its current exchange rate (trading around $30,000). JPMorgan also replaced real estate with cryptocurrencies as its "preferred alternative asset class alongside hedge funds."
In a note published on Wednesday, the bank's strategists, including Nikolaos Panigirtzoglou, wrote that its price target for Bitcoin remains at $38,000, "implying a significant upside for digital assets from there on."
Bitcoin is currently trading at $29,784, down 2.4% over the past seven days and nearly 25% below its price level of 30 days ago. JPMorgan's fair value estimate for Bitcoin is almost 28% higher than the current BTC price.
Experts also noted that last month's cryptocurrency market correction looks more like a capitulation relative to January/February prices. Going forward, they see upside for Bitcoin and the cryptocurrency market in general. Therefore, they maintain their long-term theoretical price target for the cryptocurrency at $150,000.
Furthermore, the global investment bank now sees cryptocurrencies as its "preferred alternative asset class," replacing real estate amid rising mortgage rates.
JPMorgan also detailed that the recent market downturn hurt cryptocurrencies more than other alternative investments, including real estate, and they believe this trend suggests that digital currencies have more room to recover. "Therefore, we replaced real estate with digital assets as our preferred alternative asset class along with hedge funds," they wrote.
The strategists noted that while the dramatic collapse of LUNA and UST in early May has weakened the sentiment of many crypto investors, "there were few signs so far that VC funding in the cryptocurrency sector is slowing."
Coincidentally, major venture capital firm Andreessen Horowitz announced the launch of its new $4.5 billion cryptocurrency fund on Wednesday.
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