JPMorgan Prefers Crypto Over Real Estate As Alternative Investment, Sees 28% Upside In Bitcoin
The crypto market have been beaten right, left and center since the beginning of 2022. Bitcoin (BTC) has corrected more than 40% while altcoins like Ethereum (ETH) has undergone nearly 50% correction.
In its recent note to clients, Wall Street banking giant JPMorgan has initiated a fresh coverage on Bitcoin saying that it is trading farm below its “fair price” of $38,000. Meaning, with the recent correction JPMorgan sees a potential 28% upside from the current levels. As of press time, Bitcoin is trading close to $29,000 levels.
In its report, the banking giant noted: “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 recent macroeconomic setup has pushed investors away from risk-ON assets such as crypto. JPMorgan says that in comparison to other asset classes such as private equity, private debt, and real estate, Bitcoin and crypto emerge as more profound investment options considering the steep correction they have undergone.
The strategists wrote: “A potential lagged repricing keeps us more cautious on private equity, private debt and real estate over the coming quarters. We thus replace real estate with digital assets as our preferred alternative asset class along with hedge funds.”
Besides, the JPMorgan strategists also added that venture capital funding will be a key space to watch in crypto. So far in 2022 the crypto space has received $25 billion in funding out of which $4 billion has arrived after the crash of the Terra ecosystem.
The analysts wrote: “If VC funding dries up from here as a result of the loss of confidence from the collapse of Terra’s ecosystem, then a return to the long winter of 2018/2019 would look more likely for crypto markets. Thus far there is little evidence of VC funding drying up post Terra’s collapse.”
But unlike JPMorgan, not everyone is bullish on Wall Street. During his recent interview with CNBC, Guggenheim Chief Investment Officer Scott Minerd said that Bitcoin could be seeing another 70% from the current levels and crash to $8,000.
He said: “When you break below 30,000 [dollars] consistently, 8,000 [dollars] is the ultimate bottom, so I think we have a lot more room to the downside, especially with the Fed being restrictive”. Besides, he also added that most of the cryptocurrencies in the market are junk.
Back to the list