Wednesday, May 29, 2024

Considerable upside for Bitcoin from here: JP Morgan

Bitcoin’s fair price is 28% higher than its current level, says JP Morgan. This implies that the popular cryptocurrency will see considerable upside from here following a dramatic sell-off. The investment bank highlighted that cryptos overtook real estate as one of its preferred alternative assets, that don’t typically fall in categories like bonds and stocks.

JP Morgan believes that $38,000 was a fair price for Bitcoin – 28% higher than BTC’s $29,722 level. The bank’s strategists said the last few months’ crypto market correction looks more like capitulation relative to last January or February. They see an upside for the popular crypto and for the crypto market as a whole.

Bitcoin has been biting the dust for the month of May, as it took a deadly blow from rising inflation and interest rates, the ongoing war in Ukraine, as well as the slowdown in China, and the continuing COVID-19 pandemic. This has prompted investors to ditch assets that they see as “risky”. Bitcoin has been down about 37% for the year, and Ether plunged 48%. Cryptocurrencies’ total market value has dived to $1.3 trillion in May 2022 from the highs of $3 trillion in November 2021.

JP Morgan believes the sell-off has hurt digital assets more than alternative investments like private debt, real estate, or private equity. This shows that cryptos can make a comeback. The bank’s strategists replaced real estate with digital assets as their preferred alternative asset class along with hedge funds. As such, JP Morgan is now less keen on alternative investments – ranking to be underweight from overweight.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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