JPMorgan, the leading financial service provider, has recently announced that it is bullish on the prospects of cryptocurrencies, especially Bitcoin and thinks that it is undervalued.
Bitcoin is undervalued
The investment bank thinks that Bitcoin’s fair value is $38,000, which is roughly 30 per cent higher than its current value, which is $29, 500, as per data from CoinMarketCap.
Uptrend in near future
Moreover, the financial services behemoth also predicts an uptrend in the cryptocurrency Bitcoin. The bank said in a statement, “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 stressed that the crypto markets witnessed a steeper downfall as compared to other investment classes due to the various global cues. The investment bank also highlighted that this is also the reason why the cryptocurrency markets have more room to recover.
VC interest still high in crypto
It is worth noting that the collapse of TerraUSD, Terra Luna, and the entire Terra ecosystem triggered a steep downfall in the cryptocurrency markets. But the investment bank noted that the Terra Luna crash had no impact on venture capital financing into crypto.
Crypto preferred investment
The investment bank also explained that due to the aforementioned reasons, digital assets like cryptocurrencies and hedge funds would be their preferred investment instruments in the coming time. The bank said, “We thus replace real estate with digital assets as our preferred alternative asset class along with hedge funds.”
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