December 5, 2022

JPMorgan Optimistic Bitcoin Will Hit $38,000

Popular investment institution JPMorgan has shared its views on the fair value of BTC. On Wednesday, the US-based bank said BTC would rise 28% above its current level to hit $38,000.

BTC’s plunge has led to investment losses and has become a worry to many traders. Owing to the recent Terra collapse, the OG crypto lost nearly 10% of its value. As of this writing, the coin is a few hundred dollars off the $30k mark. 

Bank Sees More Upsides than Downsides 

The bank acknowledged the impact of the recent capitulation due to UST and LUNA’s collapse. However, its strategists agree that BTC and the general crypto market will hit a good form. 

One of the strategists, Nikolaos Panigirtzoglou, said last month was more of a capitulation compared to the months before. However, it will not deter BTC from achieving its fair price. 

The recent market fall had as much impact on crypto as other sectors like housing and stocks. But, JPMorgan believes that the crash will stir virtual currencies to a comeback. 

Cryptocurrencies Have Replaced Real Estate 

JPMorgan also revealed a shocking detail regarding cryptocurrencies. It admitted that it made virtual currency its preferred alternative asset. 

The bank beckoned on real estate, stocks, and bonds. However, it reduced its holdings in these other alternative assets and increased that of cryptocurrency. Thus, replacing the class with digital assets and hedge funds. 

Surprisingly, the investment entity noted that Terra’s crash didn’t slow down venture capital funding. According to the strategists, it indicates a strong belief in virtual coins. 

It isn’t the first time JPMorgan is predicting BTC’s future price. In February, it noted in its report that the flagship asset would hit $150k. Before that, it carried out a survey that identified more than 50% of the respondents anticipating BTC to reach $60k or more in 2022. 

The predictions may unlikely be fulfilled, given the current market situation. With over 50% down, the virtual coin declined to its lowest since their ATH in November 2021. 

The plunge experienced since the beginning of the year is attributed to the interest hike and the Ukraine-Russia conflict. Some experts predict another market plunge in the wake of another interest hike. Others warn that the bear market could be the long term if a significant rebound doesn’t happen soon.