- JPMorgan strategists state that $38,000 is the “fair value” for BTC.
- JPMorgan insists that BTC is a better investment value than real estate.
The leading digital asset, BTC, continues to face strong resistance in the $30,000 region. Some crypto analysts even predict that BTC will still trade at a lower price. They claim that it is yet to reach the bottom levels where it would reverse and make a bullish run. Yet, Wall Street banking heavyweight, JPMorgan, reiterated its positive stance about BTC.
JPMorgan analysts forecast a 28% upside for BTC price
Its analysts predict that BTC’s price will soon increase by 28 percent. Part of the bank’s remarks to its investors states that the $38,000 mark represents BTC’s fair value. Hence, the bank expects that there will soon be a positive turnaround in BTC’s price and the broader crypto market.
In an address to its clients, JPMorgan wrote, “compared to January and February of this year, the crypto market correction seems like a capitulation over the last 30 days. However, we are optimistic about BTC’s value and the wider crypto market over the near term.”
Despite its positive stance about BTC, JPMorgan has reduced its rating for BTC and crypto. The banking giant no longer assigns an overweight rating to digital assets. It now assigns an underweight rating to it. JPMorgan strategists noted that “volatility would be one of the biggest struggles for BTC moving forward. The boom and bust cycle is another challenge as it prevents institutional adoption of the leading digital asset.”
JPMorgan replaces real estate with crypto as favorite alternative investments
The top banking firm further said that digital assets (especially BTC) now rank high among its list of alternative investment options. It added that the digital assets had shown a sharper correction than other asset classes. Such asset classes include real estate, private equity, and private debt.
“We no longer list real estate among our favorite alternative investments. Instead of real estate, our choice is cryptocurrencies and hedge funds.” The crypto market has been under intense selling pressure following events in the global macroeconomic space, especially the Russia-Ukraine war.
The Fed’s announcement of an imminent interest rate increase is another economic event that has also put pressure on the crypto market. The Fed’s decision to raise interest rates is due to the rising inflation rate. The Fed’s announcement has caused many investors to move their assets from risky markets such as the crypto market. Despite the general downtrend in the crypto market, many of the world’s billionaire investors remain bullish about BTC.
Popular hedge fund billionaire, Ray Dalio, stated that he still supports BTC. According to Dalio, BTC is one of the most undervalued asset classes. Fellow hedge fund manager and investor, Bill Miller, affirms Dalio’s view about BTC. Miller stated that his BTC holdings are still in his investment portfolio. He also said he would hold on to them no matter the crypto market conditions. BTC remains the most held crypto as other altcoins often follow its price movement.
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