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JPMorgan Chase & Co., an American multinational investment bank and financial services holding company, believes that the world’s biggest cryptocurrency, Bitcoin (BTC), is 28% below its “fair price,” implying there are signs of “significant upside from here.” At the time of writing, Bitcoin is trading at $29,834.
Crypto replaces real estate
As per a note released on Wednesday, JPMorgan believes that cryptocurrencies like Bitcoin have replaced the traditional real estate investment market as one of its preferred “alternative assets.” The firm added that there is a significant potential that Bitcoin will go higher from here after the massive sell-off in the past few weeks.
“The past month’s crypto market correction looks more like capitulation relative to last January/February, and going forward, we see upside for bitcoin and crypto markets more generally,” the bank’s strategists, including Nikolaos Panigirtzoglou, wrote.
Interestingly, the banking firm also wrote that they have replaced “real estate with digital assets as our preferred alternative asset class along with hedge funds.”
JPMorgan stuck to its belief that the ideal price of Bitcoin is around the $38,000 price region, which means that an aggregate of 28% surge in prices will put BTC back to its “fair price.”
JPMorgan and crypto
A few months ago, JPMorgan CEO Jamie Dimon revealed that he is not a fan of Bitcoin by saying that it is “worthless.” However, times have changed, and now, his firm seems to be working on blockchain and cryptocurrencies to improve its services in the long term.
As per a previous report from Cryptonary, the banking firm is helping Siemens, a German multinational conglomerate corporation, to build a blockchain-based payment system, and Dimon is also in talks with the CEO of Ledger.
JPMorgan also recently came out in support of Ethereum (ETH) which it believes is a much better investment than Bitcoin.
“With Ethereum deriving its value from its applications, ranging from DeFi to gaming to NFTs and stablecoins, it appears less susceptible than bitcoin to higher real yields,” the banking firm said.
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