Recently, Bitcoin plummeted below $26,000 for the first time in sixteen months, while a wider cryptocurrency sell-off erased more than $200 billion from the market. This occurred in a single day! According to JPMorgan Chase, the slide in BitCoin left the cryptocurrency quite below its fair price. But the bank believes that the cryptocurrency is getting a “significant upside” currently. It said that the digital token was undervalued by 28 percent and its price target was $38,000. However, the coin was trading at just a little above $29,600 as of Thursday afternoon.
JPMorgan has a positive outlook, as expressed by CEO Jamie Dimon. He’s a long-time cryptocurrency skeptic. He said that he personally believes that bitcoin is worthless, although he has acknowledged that many of JPMorgan’s clients look at it very differently. It was just last summer when the bank started giving wealth management clients access to a six crypto funds. The move was intended to include Bitcoin in their investment portfolios. That was despite the CEO’s prior comments where he expressed that bitcoin lacks intrinsic value and regulators will have a tendency to control it.
Hester Peirce, Securities and Exchange Commissioner, said that the United States has dropped many regulations with regards to cryptocurrency. Her agency seeks to take proactive measures to prevent crypto fraud in the future. To strategist Nikolaos Panigirtzoglou, the crypto market correction of last month seems more like capitulation that’s relative to that of last January and February. Going forward, he believes that we will see an upside for Bitcoin and general crypto markets.