Quick Take
- JPMorgan has added Bitcoin to its list of recommended alternative investments because it believes it is currently undervalued.
- JPMorgan strategists believe that $38,000 is a fair price for Bitcoin.
JPMorgan on Wednesday claimed that bitcoin and other cryptocurrencies are now among its favored “alternative” assets, according to the Wall Street Journal.
According to the report, JPMorgan strategists believe that $38,000 is a fair price for bitcoin. As a result of Bitcoin’s recent price decline, the bank has become more bullish about its long-term prospects.
Bitcoin and crypto markets are expected to rise in the future, according to the report’s findings: “the prior month’s crypto market downturn appears more like surrender than last January/February.”
In comparison to other alternative assets such as real estate, private equity, and private debt, the decrease in Bitcoin’s value has been more pronounced. “Digital assets” have a greater possibility for recovery than other alternatives because of this, according to the JP Morgan.
Findings from a recent research project cited by the bank’s analysts, “We thus replace real estate for digital assets as our favorite alternative asset class alongside hedge funds.”
This means that the bank is less excited about the asset class and recommends a decreased exposure in an investment portfolio, as it has been reported that JPMorgan changed its rating for Bitcoin and other cryptocurrencies from “overweight” to “underweight.” This is the case despite the fact that interest in the industry has grown over the last few years.
