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    JPMorgan Supports Bitcoin (BTC) Rise, Says Crypto Is ‘Preferred Alternative Asset’

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    For JPMorgan, liquidation affects cryptocurrencies more than other alternative assets. (Image: Reuters/Mike Segar/File Photo)

    The bank JPMorgan (JPM; JPMC34) stated that the fair price of the bitcoin (BTC) is 28% higher than its current price, indicating that there will be “a significant upside from this point forward” after the stock market cryptocurrencies have gone through dramatic sell-offs recently.

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    In a note sent this Wednesday (25), JPMorgan said that the cryptocurrencies have surpassed investment in real estate, becoming their preferred “alternative assets”.

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    The classification of alternative assets covers those that do not fit into usual categories, such as stocks and government bonds, according to the Business Insider.

    The bank stated that the fair price for the bitcoin it’s from US$ 38 thousand. This quote is 28% higher than the $29,762 level recorded at the time of writing.

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    Bitcoin’s fall scenario could be reversed, says JPMorgan

    In the note released today, analysts from JPMorgan said that “the correction in the crypto market in the last month appears to be a capitulation from January and February and, looking forward, we see an advantage for the bitcoin and for the market cryptocurrenciesGenerally”.

    So far this year, the cryptocurrencies faced strong declines, mainly after the increase in interest rates by the Federal Reserve (Fed, the Central Bank of U.S) and the beginning of the war between Russia and Ukraine.

    These scenarios lead investors to abandon assets considered to be risky, such as cryptocurrencies and shares of technology companies.

    THE JPMorgan also stated that liquidation affects more the cryptocurrencies than other alternative investment categories, such as real estate, private equity and private bonds. However, this points out that cryptocurrencies have greater room for recovery, the bank said.

    “Therefore, we have replaced real estate with digital assets as our preferred alternative asset class, along with hedge funds,” the analysts wrote. JPMorgan.

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    Disclaimer

    THE Money Times publishes informative articles of a journalistic nature. This publication does not constitute an investment recommendation.

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    Source: Moneytimes

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