Home News JPMorgan says Bitcoin’s ‘fair price’ is $35K

JPMorgan says Bitcoin’s ‘fair price’ is $35K


JPMorgan Chase & Co. analysts called the fair price of Bitcoin (BTC) $35,000. If the volatility of the first cryptocurrency halves, the bank’s strategists consider the goal of $73,000 justified, writes Bloomberg.

Thus, JPMorgan predicted the growth of digital currencies in 2022 at the level of 15% per annum. Which is higher than real estate (12.5%), hedge funds (7.5%) and stocks (5%).

According to analysts, the high volatility of cryptocurrencies reduces their attractiveness to investors. Moreover, the bank is confident that digital currencies cannot be recommended as a key asset.

Cryptocurrency as a “core holding”

“This challenges the idea that a price target of $100K or above, which appears to be the current consensus for 2022, is a sustainable Bitcoin target in the absence of a significant decline in Bitcoin volatility”. JPMorgan said in a report.

The alternative asset class, which includes private debt and private equity, would yield 11% next year, more than doubling the 5% return on stocks and fixed income, according to experts. Due to its volatility, they did not recommend cryptocurrency as a “core holding.”

At the time of writing, the capitalization of the cryptocurrency market has reached $2.88 trillion, according to CoinGecko. Bitcoin is trading at $63,100 and the price of Ethereum (ETH) has updated its historical maximum at above $4,600.

The current uptrend

Recall that previously in October, JPMorgan analysts called the main factor in the rally of the first cryptocurrency concerns about inflation. But not the hype regarding the first Bitcoin futures exchange-traded fund (ETF).

However, JPMorgan suggests that the current uptrend is the result of Bitcoin’s revived role as a superior hedge against inflation in the eyes of investors. As gold has failed to react to concerns about rising cost pressures in recent weeks.

Earlier, JPMorgan CEO Jamie Dimon again criticized digital gold, but admitted that the clients of the financial holding believe otherwise. “I don’t care about Bitcoin. People spend too much time and effort on it. Whether regulation will destroy the first cryptocurrency, I do not know.” he said.

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