JPMorgan claims Bitcoin and crypto are now its favourite ‘alternative asset class’

JPMorgan (NYSE: JPM) has said that the fair price of Bitcoin is 28 percent higher than its current level, meaning that the flagship digital asset has a “significant upside from here” despite the severe decrease in its price.

According to a Market Insider story published on May 25, the bank said that cryptocurrency has overtaken real estate as one of its preferred “alternative assets.”

The bank also stated it would not move from its opinion that a realistic price for Bitcoin was $38,000, referring to investments that do not fall into traditional categories like equities and bonds. On Wednesday morning, Bitcoin had risen by 28% to a price of $29,700.

The American banking giant’s strategists, notably Nikolaos Panigirtzoglou, made their thoughts known in a note:

We expect Bitcoin and the crypto market to rise in the next months, even if the recent correction appears more like a surrender compared to the previous January/February.

Analysts from the market added: Digital assets are now our favourite alternative asset class with hedge funds, replacing real estate as our preferred alternative asset class.”

In 2022, the cryptocurrency market crashes

Investors are leaving riskier assets like cryptocurrencies in 2022 because of rising inflation and interest rates, the Ukraine crisis, and China’s economic slowdown.

Since the beginning of the year, the price of bitcoin has fallen by approximately 37%, while the whole market capitalization has plunged by almost $1 trillion. All cryptocurrencies’ market value has dropped dramatically between its November peak of around $3 trillion to its May low of $1.3 trillion.

Coinciding with this, JPMorgan said that cryptocurrencies have suffered more than other alternative assets like real estate, private equity or private debt in the recent sell-off.

Finally, market analysts pointed out in their remark that cryptocurrencies have a better chance of recovering their losses.

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