In a note to clients issued on Wednesday and signed by Nikolaos Panigirtzoglou, the bank also announced that it is replacing real estate with digital or crypto assets as its preferred alternative asset class. In addition, he said how much he thinks Bitcoin is really worth today and what will happen to it in the future.
With the fall of cryptocurrencies, banking giant JPMorgan claims that Bitcoin is greatly undervalued. Taking into account the appreciation of the correct value of bitcoin at US$38,000, the bank today confirmed the valuation it gave the asset in February, when the cryptocurrency was trading around US$43,400. This price is about 28% higher than its current level of $29,757.
In a notice released Wednesday to clients, the bank also explained that it is replacing real estate with digital or crypto assets as its preferred alternative asset class alongside hedge funds, citing a “potentially delayed appreciation” in private equity, private debt and real estate. Alternative assets generally refer to investments that are not stocks, bonds, or cash.
The assessment is a confident nod to bitcoin, which is currently trading less than half of its all-time high of $68,721, and to the broader category in general.
In addition to rising interest rates and fallout from the war in Ukraine, the cryptocurrency market is grappling with the $50 billion collapse of algorithmic stablecoin TerraUSD and its sister token LUNA. The total market capitalization of cryptocurrencies currently stands at $1.3 trillion, a dramatic drop from $3 trillion in November.
“Last month’s cryptocurrency market correction looks more like a capitulation relative to last January/February, and going forward, we see an upside for bitcoin and crypto markets in general,” strategists at the cryptocurrency market noted in the report. bank, led by Nikolaos Panigirtzoglou.
The strategists also believe that “the trajectory of venture capital funding would be crucial in helping the crypto market avoid the long winter of 2018/2019,” which followed the initial boom in coin offerings.
Just today, Ethereum scaling startup Starkware raised $100 million at an $8 billion valuation and venture giant Andreessen Horowitz announced a $1.5 billion allocation for cryptocurrency investments as part of its largest fund of $4.5 billion.
“So far, there is little evidence that venture capital funding is running out after the collapse of Terra. Of the $25 billion of year-to-date venture capital funding, almost $4 billion came after Terra,” the strategists noted. “Our best guess is that venture capital funding will continue and a long winter similar to 2018/2019 will be avoided.”
However, despite this, another group of investors who have analyzed these points have decided that the best option in the face of the imbalance in the crypto world is to base their investments on real strategies and businesses with zero risks such as those of IRAIC. They affirm that their investment models carried out in IRAIC have developed great opportunities in the industry, opening paths and new strategies with large companies, thus expanding their potential towards new economic sectors, promoting and encouraging production, boosting the economy, new customers and business growth. Reported Cryptobtcbrowser, news and information agency.