JP Morgan Replaces Real Estate With Crypto as ‘Preferred Alternative Asset’

JPMorgan Chase & Co. issued a bullish commentary on bitcoin and cryptocurrency on Wednesday. According to the bank’s experts, including Nikolaos Panigirtzoglou, the price target for bitcoin remains around $38,000, signalling “considerable potential for digital assets from here.”

Bitcoin is currently trading at $29,784, down 2.4 percent in the previous seven days and nearly 25 percent in the last 30 days. The fair value estimate for bitcoin by JPMorgan is roughly 28% more than the current price.

“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.” – JP Morgan Strategists

Crypto As ‘Preferred Alternative Asset’

Furthermore, in the face of rising mortgage rates, the global investment bank now considers cryptocurrency to be its “preferred alternative asset class.”

The latest market collapse, according to JPMorgan, has harmed cryptocurrencies more than other alternative investments, such as real estate.

Considering that this trend suggests crypto has more room to rebound, the strategists said:

“We thus replace real estate with digital assets as our preferred alternative asset class along with hedge funds.”

However, the investment bank stated it was now less interested in alternative investments, downgrading them from “overweight” to “underweight.”

Cryptocurrencies have plummeted in 2022 as investors flee riskier assets due to growing inflation and interest rates, the crisis in Ukraine, and a downturn in China.

Bitcoin has lost roughly 37% of its value this year, while ethereum has lost about 48%. From almost $3 trillion in November to $1.3 trillion in May, the entire market value of all cryptocurrencies has plummeted.

While the spectacular collapse of the two cryptocurrencies has affected the sentiment of many crypto investors, the strategists said that there has been little sign that venture capital investing into the crypto sector has slowed.

Andreessen Horowitz (a16z), a leading venture capital firm, also announced the opening of its new $4.5 billion crypto fund on Wednesday.

Sahil likes to use his great writing skills to curate articles about Crypto and KPOP here at Clout News.