Amid Market Downslide, JPMorgan Sees Upside for Bitcoin, Cryptos

A strategist at JPMorgan said that digital assets are the financial organization’s most preferred alternative asset class. He put Bitcoin’s fair value at 28% higher than the current price level of about USD 29,000.

JPMorgan Pegs BTC Fair Price at USD 38K, Long-term Estimate at USD 150K

Bitcoin’s recent down shot has left the crypto way below its considered fair price, which gives the digital currency a significant upside, according to JP Morgan Chase. 

The bank indicated that the Bitcoin was undervalued by about 28% and put the price target at USD 38,000. However, the long-term price estimate, according to Nikolaos Panigirtzglou, the global market strategist at JPMorgan Chase, is USD 150,000. On Thursday afternoon, Bitcoin was trading at around USD 29,000.

The selloff experienced in the recent weeks hurt the cryptos way more than other instruments, from real estate to private equity and private debt. However, the downshift leaves Bitcoin with ample room for a rebound. Panigirtzglou added that the bank has replaced real estate with digital assets as the preferred asset class, at the back of the rising mortgage rates. 

JPMorgan Crypto-Focus Related to the Open Focus of its CEO

The positive outlook of JPMorgan is largely because of its CEO, Jamie Dimon, who is very open about cryptos despite his personal stand. Dimon once said that he thought “Bitcoin was worthless” but was quick to insist that his clients have different views. 

“I’m not a Bitcoin supporter. I don’t care about Bitcoin. I have no interest in it,” Dimon said in 2021. “On the other hand, clients are interested, and I don’t tell clients what to do,” he posed. 

In the summer of 2021, JP Morgan started offering wealth management clients access to crypto funds, helping them add Bitcoin exposure to their portfolios. This happened despite Dimon’s earlier viewpoint that BTC had “no intrinsic value.”

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