- Cryptocurrency has surpassed real estate in popularity, according to the bank.
- JPMorgan believes that $38,000 is a reasonable price for bitcoin.
In JPMorgan’s opinion, bitcoin’s true worth is 28 percent greater than it is now valued. Also, it is a favored alternative asset class, according to the bank. Even though the cryptocurrency market has had a rough week, the bank thinks considerable gains will be in the near future. As one of its favorite “alternative assets,” cryptocurrency has surpassed real estate in popularity, according to the bank.
Further Space To Rise
JPMorgan believes that $38,000 is a reasonable price for bitcoin. It is presently trading at a far lower price than the bank expects it to be worth. Due to rising inflation and interest rates, the Ukraine crisis, and a slump in China, investors are fleeing riskier assets such as cryptocurrencies.
In November, the overall market value of crypto was $3 trillion. In May, the total market value of crypto was $1.3 trillion. As a consequence of the sell-off, according to JPMorgan, cryptocurrencies have suffered more than other alternative assets like equities, debt funds, or real estate. As said, this suggests that cryptos have further space to rise.
The cryptocurrency industry has been rocked by the devastating crash of TerraUSD and the whole Terra ecosystem. In the wake of the financial crisis, small and medium-sized investors were the biggest losers. They watched helplessly as all of their money vanished. The decline in LUNA, according to JPMorgan, had little effect on venture capital financing for cryptocurrencies, though. Overweight alternative investments are now underweight, which indicates that the bank has less interest in them.