JPMorgan places BTC fair price at $38K, declares crypto a preferred alternative asset

JPMorgan has positioned Bitcoin’s (BTC) truthful worth at $38,000, which is 28% larger than its present stage of round $29,500, in keeping with a be aware the financial institution issued to shoppers on Wednesday. “The previous month’s crypto market correction seems extra like capitulation relative to final January/February and going ahead we see upside for Bitcoin and crypto markets extra typically,” the be aware stated. Financial institution strategist Nikolaos Panigirtzoglou was the lead writer of that doc.

A financial institution traders’ be aware positioned Bitcoin’s truthful worth on the identical stage in February. It was buying and selling round $43,000 at the moment.

Crypto has surpassed actual property as a most popular “various asset” for the financial institution, together with hedge funds, the be aware continues. It stated:

“To date there may be little proof of VC [venture capital] funding drying up post-Terra’s collapse. Of the $25 billion VC funding year-to-date, virtually $4 billion got here after Terra. Our greatest guess is the VC funding will proceed and an extended winter much like 2018/2019 can be averted.”

VC funding can be essential to avoiding that crypto winter, it added.

On the identical day, main enterprise capitalist Andreessen Horowitz introduced the closing of its fourth cryptocurrency fund at $4.5 billion. Additionally on Wednesday, crypto-focused enterprise agency NGC Ventures launched its third blockchain fund with $100 million raised from traders that included Babel Finance, Huobi Ventures and Nexo Ventures.

JPMorgan CEO Jamie Dimon has repeatedly expressed his private antipathy towards cryptocurrency, going as far as to name it a fraud, however the financial institution, itself, has taken a extra sensible stance. It grew to become the primary main financial institution within the Metaverse earlier this 12 months. Dimon has praised crypto for it cross-border cost facility.