JP Morgan – one of the largest investment banks on Wall Street – sticks to its previous fair-value target for bitcoin at $38,000, meaning that the asset is currently being traded with a discount. The bank believes BTC could recover stronger than other beaten-down assets because it had fallen far deeper amid the correction period.
- JPMorgan maintains bitcoin’s fair value at $38,000, suggesting a potential 28% upside for the primary cryptocurrency, sitting slightly below the $30,000 level.
- According to the bank’s note published on Wednesday, the Wall Street giant said cryptocurrency is one of its preferred alternative assets over real estate, and it does not fall into the same category as stocks and bonds.
- The giant’s strategies, led by Nikolaos Panigirtzoglou, consider last month’s market correction similar to what happened in January and February, thus predicting that a relief rally in the crypto market may be just around the corner.
- As bitcoin is down over 60% from ATH recorded last November, and the total capitalization of all cryptocurrencies plunged from $3 trillion to 1.3 trillion, the bank sees opportunities in the rapidly rising asset class. Since it has been hit harder than traditional assets like private equity and real estate, the bank stated, “there is more room for cryptos to rebound.”
- Despite the recent catastrophe occurring to Terra’s ecosystem, which may have painted a negative picture of the industry, the strategists, however, noted there is little sign suggesting that VC money has stopped pumping funds into the space.
- In February, the investment bank set bitcoin’s fair price at $38,000. The figure was based on the premise that BTC is around 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 narrowed three times from its level in February, its fair value could reach $50,000.
Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).
PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to receive up to $7,000 on your deposits.
Download MAXBIT Android App, Your best source of all crypto news!
Share this article: