JPMorgan<\/strong> says digital assets have now replaced real estate as its \u201cpreferred alternative asset class,\u201d and considers USD 38,000 a fair price for bitcoin (BTC).<\/p>\nAccording to the bank, digital assets are now the best alternative asset class to invest in, along with hedge funds, per multiple media reports. It said the broad selloff in risk assets this year has hurt digital assets more than other alternative assets, including private equity, real estate, and private debt.<\/p>\n
As a result, the strategists said there could be more room for crypto to rise compared to traditional assets. \u201cWe thus replace real estate with digital assets as our preferred alternative asset class along with hedge funds,\u201d the JPMorgan\u2019s strategists wrote.<\/p>\n
Alternative assets generally refer to \u200b\u200ball investment assets that are not stocks, bonds, or cash.<\/p>\n
The note added that other alternative asset classes such as real estate could soon be hit by \u201clagged repricing.\u201d However, the chances of this happening in the digital asset market are smaller since this market has already gone through what looks like a \u201ccapitulation.\u201d<\/p>\n
The note further said that bitcoin appears undervalued at the moment, and that USD 38,000 is a fair price for the number one cryptocurrency.<\/p>\n
The USD 38,000 price target JPMorgan has for bitcoin represents an upside of about 30% from the current price of USD 29,250 (as of 08:30 UTC).<\/p>\n
In February, when BTC traded above USD 40,000, the bank also said that the fair value of BTC is around USD 38,000.<\/p>\n
Now, JPMorgan\u2019s strategists also noted that is \u201ccrucial\u201d for cryptoassets in general that venture capital (VC) continues to flow into the space. It added that there are few signs that funding is drying up, despite the recent collapse of Terra (LUNA).<\/p>\n
\u201cThus far there is little evidence of VC funding drying up post-Terra\u2019s collapse. Of the USD 25 billion VC funding year-to-date, almost USD 4 billion came after Terra. Our best guess is the VC funding will continue and a long winter similar to 2018\/2019 would be averted,\u201d the note said.<\/p>\n
The note was written by a group of investment strategists at the bank, including Nikolaos Panigirtzoglou. The same strategist has previously said about bitcoin that it has potential in an inflationary environment given that some investors could consider it as a better inflation hedge than gold. ____<\/strong> – DeFi and Blockchain ‘Are Real’ – JPMorgan CEO – Here is JPMorgan’s ‘Metaverse Strategy’ Advice for Businesses<\/p>\n– Bitcoin & Crypto Fund Flows Turn Negative, Continued Headwinds Likely – Analysts Divided on Near-Term Bitcoin & Crypto Outlook as Market Stabilizes<\/p>\n
– Crypto & Stocks ‘Decoupling’ Prediction Flops but There’s Still Hope – Bitcoin Halfway to Next Halving \u2013 What Can History Teach Us?<\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"
Source: iStock\/danielvfung \u00a0 The Wall Street investment bank JPMorgan says digital assets have now replaced real estate as its \u201cpreferred alternative asset class,\u201d and considers USD 38,000 a fair price for bitcoin (BTC). According to the bank, digital assets are now the best alternative asset class to invest in, along with hedge funds, per multiple […]<\/p>\n","protected":false},"author":1,"featured_media":11617,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","om_disable_all_campaigns":false,"footnotes":""},"categories":[43],"tags":[],"class_list":["post-11616","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-nft"],"yoast_head":"\n
Bitcoin Undervalued, Crypto Now Better Than Real Estate - JPMorgan | NFT & Crypto News<\/title>\n \n \n \n \n \n \n \n \n \n \n \n\t \n\t \n\t \n \n \n \n\t \n\t \n\t \n