- The financial services company of JPMorgan Chase (JPM) has recently put a price tag on bitcoin (BTC), though it’s way less as compared to its current market price.
- In a report to its investors, JPMorgan – as part of their first-ever outlook focused on alternative investments – mentioned that cryptocurrencies that fall under the alternative assets category should carry on to outperform into 2022.
- However, the financial institution pointed out that the king coin’s “fair value” should only be at $35,000 per JPM’s price model.
Now, the above-mentioned price pitch was around 45 percent lesser than bitcoin’s price that currently sits at $63,120.48 as of publication. The $73,000 price target may well seem to be a reasonable price, nonetheless, provided that the so-called relative volatility continues in 2022. However, they made it clear that the high price target that everyone’s expecting is pretty much unlikely.
Further, it was mentioned that such challenges the idea that the $100,000 or higher price target – that is the consensus as of late for next year – is a sustainable target for bitcoin provided that there is no substantial decline in the digital currency’s volatility.
It was also suggested that the entry point is as of late not looking good, through the crypto assets are described as being on a “multiyear structural ascent.”
These financial pundits went on to conclude that the category of alternative assets, which both private equity and private debt are both a part of, will be making a comeback by 11 percent in 2022, which doubles the five percent that was gained from both fixed income and stocks. The analysts did not recommend crypto though as a “core holding” because of its volatility.
The strategists of JPMorgan advised crypto folks about the volatility back in early September after the market went bullish in August as this witnessed the total crypto capitalization topping two trillion dollars by the end of the said month. It took a couple of months more before the market cap surged by 35 percent hitting $2.87 trillion.
It was also in September when Jamie Dimon – JPMorgan’s CEO – commented that BTC prices could still go up tenfold, though made it clear that he’s not investing in it. Additionally, the CEO also stated that the crypto was worthless the next month.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.