The price of bitcoin, according to JPMorgan, has “significant upside.” The cryptocurrency’s price target is 28 percent higher than it is now, according to the global investment bank. Cryptocurrencies, along with hedge funds, have replaced real estate as JPMorgan’s “preferred alternative asset class.”
Global investment bank JPMorgan published a bullish note on bitcoin and cryptocurrency Wednesday. The bank’s strategists, including Nikolaos Panigirtzoglou, wrote that their price target for bitcoin remains at $38,000, “implying significant upside for digital assets from here.”
At the time of writing, bitcoin is trading at $29,784, down 2.4% over the past seven days and almost 25% over the last 30 days. JPMorgan’s fair value estimate for bitcoin is nearly 28% higher than the current price of BTC.
The JPMorgan strategists detailed:
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.
While the investment bank’s price target for bitcoin is $38K, its strategists have said that their long-term theoretical target price for the cryptocurrency is $150K.
Crypto Becomes JPMorgan’s Preferred Alternative Asset Class, Replacing Real Estate
In addition, the global investment bank now sees cryptocurrencies as its “preferred alternative asset class,” replacing real estate amid soaring mortgage rates.
JPMorgan detailed that the recent market downturn hurt cryptocurrencies more than other alternative investments, including real estate.
Noting that this trend suggests crypto has more room to rebound, the strategists wrote: We thus replace real estate with digital assets as our preferred alternative asset class along with hedge funds.