JPMorgan Sees 'Significant Upside' to Bitcoin — Replaces Real Estate With Crypto as 'Preferred Alternative Asset'

JPMorgan sees “significant upside” to the price of bitcoin. The global investment bank’s price target for the cryptocurrency is 28% above its current price. JPMorgan has also replaced real estate with cryptocurrencies as its “preferred alternative asset class along with hedge funds.”

JPMorgan’s Bitcoin Price Target Is 28% Above Current Price

Global investment bank JPMorgan published a bullish note on bitcoin and cryptocurrency Wednesday. The bank’s strategists, including Nikolaos Panigirtzoglou, wrote that their price target for bitcoin remains at $38,000, “implying significant upside for digital assets from here.”

At the time of writing, bitcoin is trading at $29,784, down 2.4% over the past seven days and almost 25% over the last 30 days. JPMorgan’s fair value estimate for bitcoin is nearly 28% higher than the current price of BTC.

The JPMorgan strategists detailed:

The past month’s crypto market correction looks more like capitulation relative to last January/February and going forward we see upside for bitcoin and crypto markets more generally.

While the investment bank’s price target for bitcoin is $38K, its strategists have said that their long-term theoretical target price for the cryptocurrency is $150K.

Crypto Becomes JPMorgan’s Preferred Alternative Asset Class, Replacing Real Estate

In addition, the global investment bank now sees cryptocurrencies as its “preferred alternative asset class,” replacing real estate amid soaring mortgage rates.

JPMorgan detailed that the recent market downturn hurt cryptocurrencies more than other alternative investments, including real estate.

Noting that this trend suggests crypto has more room to rebound, the strategists wrote:

We thus replace real estate with digital assets as our preferred alternative asset class along with hedge funds.

The JPMorgan note followed a massive sell-off in the crypto market amid the implosion of cryptocurrency terra (LUNA) and algorithmic stablecoin terrausd (UST).

The strategists noted that while the dramatic collapse of the two cryptocurrencies has weakened the sentiment of many crypto investors, there was little sign so far that venture capital funding into the crypto sector is slowing down.

Coincidentally, major VC firm Andreessen Horowitz (a16z) announced Wednesday the launch of its new $4.5 billion crypto fund.