JPMorgan has positioned Bitcoin’s (BTC) honest worth at $38,000, which is 28% greater than its present stage of round $29,500, in accordance with a observe the financial institution issued to purchasers on Wednesday. “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 note said. Bank strategist Nikolaos Panigirtzoglou was the lead author of that document.
A bank investors’ note placed Bitcoin’s fair value at the same level in February. It was trading around $43,000 at that time.
Crypto has surpassed real estate as a preferred “alternative asset” for the financial institution, together with hedge funds, the observe continues. It stated:
“Thus far, there is little evidence of VC [venture capital] funding drying up post-Terra’s collapse. Of the $25 billion VC funding year-to-date, almost $4 billion came after Terra. Our best guess is the VC funding will continue and a long winter similar to 2018/2019 would be averted.”
VC funding could be essential to avoiding that crypto winter, it added.
On the identical day, main enterprise capitalist Andreessen Horowitz introduced the closing of its fourth cryptocurrency fund at $4.5 billion. Also on Wednesday, crypto-focused enterprise agency NGC Ventures launched its third blockchain fund with $100 million raised from buyers that included Babel Finance, Huobi Ventures and Nexo Ventures.
JPMorgan CEO Jamie Dimon has repeatedly expressed his private antipathy towards cryptocurrency, going as far as to name it a fraud, however the financial institution, itself, has taken a extra sensible stance. It turned the primary main financial institution within the Metaverse earlier this 12 months. Dimon has praised crypto for it cross-border cost facility.
