The cryptocurrency market has been experiencing a free fall during the past weeks. However, though, despite this drop, JPMorgan is optimistic about what the upcoming months have in store for Bitcoin. According to JPMorgan, Bitcoin is currently trading 28% below its fair price, which is $38,000. JPMorgan said this even back in February when it claimed that Bitcoin was trading 12% above its fair price.
Even though there are still many people who don’t believe in crypto, many investors are joining this market. Recently, cryptocurrencies have even overtaken real estate when it comes to which are favored by banks as the best alternative assets.
“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.”
Crypto Has Room To Grow
As the world is going under several crises, investors are abandoning riskier investments such as crypto. This is causing the market to lose value. From the 1st of January until today, the cryptocurrency market capitalization has decreased by $1 trillion. The two leading cryptocurrencies, Bitcoin and Ethereum, have lost 37% and 48% of their value respectively.
Currently, most markets around the world are experiencing a hit. However, JPMorgan claims that cryptocurrencies are the ones to suffer the most. The fall of other alternative assets such as private debt, real estate, and private equity is nowhere as big as that of crypto. This indicates that crypto has more room to recover and grow than other assets, according to the firm.
Taking that into consideration, JPMorgan is bullish on Bitcoin. They claim that they are in for the long run, implying that Bitcoin is likely to promote the future of money. Similarly, the CEO of MicroStrategy, Michael Saylor, predicts that the price of Bitcoin could hit $1 million in the future.
Is Bitcoin The Future?
Public opinion on Bitcoin was always controversial. While some people were strongly opposed to the idea, others fell in love with it. At the time of writing, Bitcoin is not performing well. As such, trading volume has been dropping.
Will Bitcoin Reach $150,000?
As mentioned before, JPMorgan believes that Bitcoin should have a price of $38,000 per piece. To be more exact, they believed this from January 2022. However, though, the firm’s statements include an assumption that says that Bitcoin is four times more volatile than gold. Fairly enough, JPMorgan’s long-term forecast for Bitcoin shows this cryptocurrency at a price of $150,000 sometime in the future.