JPMorgan puts BTC’s fair price at $38,000 and declares crypto a preferred alternative asset

JPMorgan has put the fair price of Bitcoin (BTC) at $38,000, up 28% from the current level of around $29,500, according to a note the bank issued to clients on Wednesday. “The crypto market correction over the past month is looking more like a capitulation compared to last January/February, and going forward we see upside for the bitcoin and crypto markets in general,” reads the release. Bank strategist Nikolaos Panigirtzoglou was the main author of this document.

A bank investor note put bitcoin’s fair value at the same level in February. At that point it was trading around $43,000.

Crypto has overtaken real estate as the preferred “alternative investment” for the bank, along with hedge funds, it said. It said:

“So far there is little evidence of VC [venture capital] Funding the drying up after Terra’s collapse. Of the $25 billion in VC funding year to date, nearly $4 billion came to Terra. Our best guess is that VC funding will continue and a long winter similar to 2018/2019 would be averted.”

VC funding would be crucial to avoid this crypto winter, she added.

On the same day, major venture capitalist Andreessen Horowitz announced the closing of its fourth $4.5 billion cryptocurrency fund. Also on Wednesday, crypto-focused venture firm NGC Ventures launched its third blockchain fund with $100 million raised by investors including Babel Finance, Huobi Ventures, and Nexo Ventures.

JPMorgan CEO Jamie Dimon has repeatedly expressed his personal dislike for cryptocurrency, even calling it a scam, but the bank itself has taken a more practical stance. It became the first major bank in the Metaverse earlier this year. Dimon has praised crypto for its cross-border payment capability.

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