The bank’s strategists, including Nikolaos Panigirtzoglou, wrote that their price target for bitcoin remains at $38,000, “implying a significant rally for digital assets.” JPMorgan’s fair value estimate for bitcoin is almost 28% higher than the current price of BTC.
Experts also point out that the cryptocurrency market correction last month looks more like a capitulation relative to January/February prices. In the future, they see rises for bitcoin and the cryptocurrency market in general. Therefore, they keep their theoretical long-term price target for the cryptocurrency at $150,000.
Furthermore, the global investment bank now sees cryptocurrencies as its “preferred alternative asset class”, replacing real estate amid rising mortgage rates.
Likewise, JPMorgan details that the recent market crash hurt cryptocurrencies more than other alternative investments, including real estate, and they believe this trend suggests that digital currencies have more room to recover. “Therefore, we replace real estate with digital assets as our preferred alternative asset class alongside hedge funds,” they write.
Strategists note that while the dramatic collapse of LUNA and the UST in early May dampened sentiment among many crypto investors, “There was little sign so far that venture capital funding in the cryptocurrency sector is slowing down.”
Source: Ambito
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