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JPMorgan Replace Real Estate With Cryptocurrencies As Their Preferred Alternative Asset Class: Here’s Why 

www.thecoinrepublic.com 26 May 2022 10:08, UTC
Reading time: ~2 m

Following a steep decline in cryptocurrency prices, JPMorgan has stated that the fair price of Bitcoin is 28% higher than its present level, hinting that there is a “considerable upside from here” for the leading cryptocurrency by market cap. 

In a note published on Wednesday, May 25, the bank has said that cryptocurrencies noted that the bank had outperformed real estate as one of its favored “alternative assets,” as per a report by Market Insider. 

Alternative assets are investments that are not categorized conventionally like the way stocks and bonds are, while the bank also said that it stands firm from its position that a reasonable price for Bitcoin was $38,000. As of Wednesday morning, the number depicted a rise of 28% to Bitcoin’s level of $29,700.

At the time of writing, the flagship currency was trading at $29,616.22, down 0.53% in the last 24 hours.

The note also contains opinions of the American banking giant’s strategists, including Nikolaos Panigirtzoglou:

The correction of the crypto market mirror calculation relative to last January/February. They believe that we can witness upside for both Bitcoin and crypto markets in general.

Further adding, the market analyst said that, therefore, they replace real estate with cryptocurrencies as their preferred alternative asset class and hedge funds. 

Crypto Market’s Bearish Trend In 2022

Investors are leaving assets that are considered risky due to rising inflation and interest rates, the conflict in Ukraine, and other such factors. This has resulted in a decline in the value of digital assets in 2022. 

Bitcoin prices have plummeted by 37% since the start of the year, while the global market cap has lost approx. $1 trillion. The total market value of all cryptocurrencies has significantly decreased. 

JPMorgan also stated that the sell-off has proved to be more detrimental to the value of digital assets than other alternative assets like real estate, private equity, or private debt.

The market experts also mentioned that this could be because of the fact that there are more opportunities for cryptocurrencies to recover.

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