The US multinational investment bank JP Morgan Chase has set a price on Bitcoin, which is much lower than the assets currently traded.
As part of the bank’s first outlook focusing on alternative investments, in a report to investors, strategists stated that alternative assets, including cryptocurrencies, “should continue to outperform the market through 2022.”
They also asserted that, according to the company’s price model, the “fair value” of Bitcoin is approximately US$35,000, which is approximately 45% lower than its current transaction price of US$63,281.Nevertheless, strategists believe that if the relative volatility continues into next year, the price target of $73,000 seems reasonable Add to, But not the sky-high goal that many people expect.
“This challenges the price target of $100,000 or more. This seems to be the current consensus in 2022. This is a sustainable Bitcoin target without a significant decline in Bitcoin’s volatility.”
They did say that the current entry point “looks unattractive”, but that crypto assets are in a “multi-year structural rise”.
Analysts concluded that alternative asset classes, including private debt and private equity, will return 11% next year, twice the 5% of stocks and fixed income. However, due to its volatility, they do not recommend cryptocurrency as a “core asset”.
JPMorgan Chase strategists warned of the volatility in early September after bullish market activity in August, and the total market value of cryptocurrencies exceeded $2 trillion by the end of August. According to CoinGecko’s data, two months later, the market value has increased by 35% to $2.87 trillion.
At the end of September, JPMorgan Chase CEO Jamie Dimon said, Bitcoin price may still rise tenfold, But he is not interested in investment. He also stated that the asset was “worthless” for the next month.
The bank’s retail wealth customers are clearly interested in this, and Granted access to crypto asset classes in July. In early October, JP Morgan Chase strategists pointed out that institutional investors Support Bitcoin instead of gold As a hedge against inflation.
Morgan Stanley, the Wall Street investment bank, has also been providing analysis of crypto assets. On November 1, the bank released a report for its wealth management clients detailing industry trends, crypto market indicators, and potential regulatory impact.
Morgan Stanley is one of many major investment banks including JPMorgan Chase, Wells Fargo, UBS, Citigroup, and Goldman Sachs, which have recently been scrambling to hire crypto experts. report.