JPMorgan puts BTC fair price at $38,000, declares crypto a preferred alternative asset

JPMorgan placed Bitcoin’s ( BTC ) fair price at $38,000, 28% higher than its current level of around $29,500, according to a note to clie...

JPMorgan placed Bitcoin’s (BTC) fair price at $38,000, 28% higher than its current level of around $29,500, according to a note to clients the bank released on Wednesday. “Last month’s crypto market correction looks more like a capitulation from last January/February and looking forward, we see an upside for bitcoin and crypto markets more generally,” the note reads. Bank strategist Nikolaos Panigirtzoglou was the main author of this document.

A note from bank investors placed the fair value of bitcoin at the same level in February. It was trading around $43,000 at the time.

Crypto has outmoded real estate as the preferred “alternative asset” of the bank, along with hedge funds, continues the note. This mentioned:

“So far, there is little evidence of VC [venture capital] funding dries up after Terra’s collapse. Of the $25 billion in VC funding year-to-date, nearly $4 billion has come after Terra. Our best guess is that venture capital funding will continue and a long winter similar to 2018/2019 would be avoided.

Venture capital funding would be key to avoiding this crypto winter, he added.

On the same day, the great venture capitalist Andreessen Horowitz announced the closure of its fourth cryptocurrency fund at $4.5 billion. Also on Wednesday, crypto-focused venture capital firm NGC Ventures launched its third blockchain fund with $100 million raised from investors such as Babel Finance, Huobi Ventures and Nexo Ventures.

JPMorgan CEO Jamie Dimon has repeatedly said expressed his personal antipathy to cryptocurrency, going so far as to call it a fraud, but the bank itself has taken a more practical stance. This becomes the first major bankin the Metaverse earlier this year. Dimon praised crypto for its ease of cross-border payment.