Investment bank JPMorgan says that bitcoin has become the best alternative asset, with a fair price of $38k, or 28% higher than the current value.
Source: Markets Insider
BTCUSD is up +0.51%
The bank maintains that cryptocurrencies are ahead of real estate as preferred alternative assets or assets that are not categorized under stocks or bonds.
JPM’s analyst Nikolaos Panigirtzoglou remarked that the last month’s correction in cryptocurrency was a capitulation compared to the price in January and February. He adds that a positive momentum could be seen in crypto moving forward.
The comments come amid a bearish market in the sector in the first half of the year following the high inflation rate, political instability, and a slowdown in China’s economy.
Bitcoin has lost over 30% in the year, while Ethereum has tanked 48% as the total market capitalization of crypto falls from $3 trillion to $1.3 trillion.