Despite the general bearish sentiment in the crypto markets, strategists at US multinational investment bank JPMorgan believe there is immense upside potential. According to banking strategists, Bitcoin is undervalued and poised to see a double-digit percentage upside.
In an investment note written by the bank’s investment strategists, JPMorgan said Bitcoin could see a price surge from here, stating that from their perspective, $38,000 is a fair price for the main crypto asset. Additionally, the note also revealed that the bank has now replaced real estate with digital assets in its alternative asset portfolio.
“Last month’s crypto market correction looks more like a capitulation from last January/February and looking forward, we see an upside for bitcoin and crypto markets more generally,” the strategists wrote. from JPMorgan in the note released Wednesday.
Global inflation concerns, compounded by the conflict in Europe and rising interest rates, put pressure on equity and crypto markets as investors became increasingly risk averse. Over the past six months, crypto markets have struggled after several top digital assets hit new highs in November.
Notably, crypto markets have been impacted more by these macro factors than equity and bond markets. As a result, several crypto assets fell more than 50% from their highs, even as the total market capitalization lost around $1.7 trillion. However, JPMorgan believes this means there is more room for upside in the nascent market than in other markets like real estate.
Also, in the face of the recent Terra ecosystem crash that shook the entire crypto market, the investment bank revealed that the crash did nothing to deter venture capitalists from pouring in cash. money in the nascent market. In the meantime, it’s also worth noting that the investment bank, while seeing upside potential in the crypto market, had to adjust its stance on alternative assets as a whole, now classifying them as “underweight ”.
Notably, investment banking isn’t alone in seeing upside potential for developing markets in the near term. Speaking to CoinDesk TV, Grayscale CEO Michael Sonnenshein also expressed a similar sentiment. Sonnenshein said, “I think in the short term we [crypto] we will find our place.
Today, bitcoin once again fell below the $30,000 price level, with major altcoins Ether, Solana, AVAX, BNB, Polkadot, and ADA seeing their prices fall by more than 8%. Therefore, Bitcoin looks set to extend its weekly losing streak. It is currently down 5.57% on the day, trading around the $29,996 price level.
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JPMorgan Believes Bitcoin Is Currently Undervalued, Sees Huge Crypto Upside Potential ⋆ ZyCrypto
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