JPMorgan believes $38k per BTC is a reasonable price, picks crypto as its favored indispensable asset
May 26, 2022 5:38 AM
In a note sent out by JPMorgan to its customers on Wednesday, the banking colossus believe Bitcoin's fair price should be around $38,000, comparing with the current market price that's approximately 28% higher as bitcoin trades just over $29,650 at the time of report.
“The past month's crypto market correction looks more like capitulation comparative to last January/ February and going ahead we see upside for Bitcoin and crypto markets more naturally," the note stated. Bank strategist Nikolaos Panigirtzoglou was the lead author of that document.
A bank investors ’ note placed Bitcoin’s fair value at the same position in February. It was trading around $43,000$ at that time.
Crypto has eclipsed real estate as a preferred “ alternative asset ” for the bank, along with hedge funds, the note continues.
The banking colossus says Terra's collapse didn't appear to damage the VC market, and things will be looking up for crypto as long as VC stays in. the note reads:
“ Therefore far, there's little proof of VC( venture capital) backing drying up post-Terra’s collapse. Of the $25 billion VC backing time- to- date, nearly $4 billion came after Terra. Our best guess is the VC backing will continue and a long downtime similar to 2018/2019 would be prevented. ” VC backing would be critical to evading that crypto downtime, it added.
The bank, lately became the first major bank in the Metaverse earlier this year. Dimon who's the CEO has falsified his original comments when he called Bitcoin(BTC) a scam and lauded crypto for its cross-border payment facility.