JPMorgan Chase: Bitcoin's fair price is $38,000, cryptocurrency is the preferred alternative asset

A JPMorgan Chase & Co report to clients on Wednesday put bitcoin's fair price at $38,000, 28% above current levels of around $29,500. "Compared to January/February last year, the correction of the crypto market in the past month has been more like capitulation, and we expect Bitcoin and crypto markets to generally rise in the future," said the report. Nikolaos Panigirtzoglou, a bank strategist, was the main author of the document By.

In February, a bank investor report put bitcoin's fair value at the same level. Bitcoin was trading around $43,000 at the time.

Cryptocurrencies have overtaken real estate as the bank's and hedge funds' "alternative asset" of choice, the report said. According to the report:

“So far, there is little evidence that VC funding will dry up after Terra’s collapse. Nearly $4 billion of the $25 billion in VC funding so far this year has come from Terra. Our best guess is that VC funding will Keep going and avoid a long winter like 2018/2019."

The report added that venture capital is crucial to avoiding crypto winter.

On the same day, major VC firm Andreessen Horowitz announced that it had raised $4.5 billion for its fourth crypto fund. Also on Wednesday, cryptocurrency-focused venture capital firm NGC Ventures launched its third blockchain fund, raising $100 million from investors including Babel Finance, Huobi Ventures and Nexo Ventures.

JPMorgan Chase CEO Jamie Dimon has repeatedly expressed his personal distaste for cryptocurrencies, even calling them a fraud, but the bank itself has taken a more practical stance. Earlier this year, it became the first major bank to enter the Metaverse. Dimon praised the cross-border payment capabilities of cryptocurrencies.

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