JP Morgan says that BTC could rise as high as $73000 if the markets continue to remain frothy.
JP Morgan, the American multi-national bank has set a price on Bitcoin. The price is a lot less than the assets being currently traded for. An investor’s report of the bank stated that
“Alternative assets which include cryptocurrencies should continue to outperform in 2022.”
Moreover, JP Morgan analysts stated that the ‘fair value’ of Bitcoin is currently around $35,000 on the basis of the Firm’s price model, which is approximately 45% below its current trading price i.e, $63,281. Nonetheless, a target price of $73,000 seems rational.
In addition, they also challenged the idea of a target price of $100K or more, which seems to be the current consensus for 2022. It is a supportable Bitcoin Target in the absence of a significant decline in the volatility of bitcoin. Also, the bank suggests that the current entry point looks unappealing. However, the crypto assets are on the multi-year structural ascent.
Additionally, the JP Morgan bank analyst stated that the alternative asset class, which includes private equity and debt, will restore 11% next year while doubling the 5% profit from the fixed income and stocks. However, they did not recommend crypto as a “core holding” due to its instability.
The JP Morgan’s strategist alerted about the instability in early September following the upbeat market activity in which total crypto capitalization topped $2 trillion by the end of August. Further, in late September, JPMorgan CEO Jamie Dimon stated that the Bitcoin prices could increase by ten times; however, he isn’t interested in investing in it at this time.
