JPMorgan says Crypto surpasses Real Estate As ‘Preferred Alternative Asset Class’.

Key Takeaways

  • Digital assets have surpassed real estate as JP Morgan’s favored alternative asset. JP Morgan also stated that Bitcoin’s true value is 28 percent greater than its current value.
  • According to JPMorgan, the recent market crash has impacted cryptocurrencies more than other alternative investments like real estate.

Despite the crypto market being bearish, JPMorgan believes bitcoin is significantly undervalued. 

For a long time, the price of Bitcoin has been ranging from $26,000 to $30,000. Bears are not able to lower, and bulls not higher than $31K. Despite this, JPMorgan predicts that Bitcoin’s price will hit $38,000. That’s a 28% increase above the existing rate. The financial service provider is optimistic about cryptocurrency that it has supplanted real estate as its favored alternative asset.

Bitcoin Prices
Bitcoin Prices

JPMorgan issued a bullish commentary on bitcoin and cryptocurrency on Wednesday. According to the bank’s experts, including Nikolaos Panigirtzoglou, the price target for bitcoin remains around $38,000, signaling “considerable potential for digital assets from here.”

That’s not the end. The business is likewise bullish on Bitcoin’s long-term price. In the next few years, they have quoted a price of at least $150,000. While we didn’t reach that level during this bull run, the next halving might spark a strong rally, pushing the price over the $100,000 threshold.

The strategists at JPMorgan provided the following details:

The strategists at JPMorgan provided the following details:

In comparison to last January/February, the crypto market correction this month looks more like a surrender, and we expect bitcoin and crypto markets to rise in the coming months.

JPMorgan Recognizes Cryptocurrency As An Alternative Asset Class:

Crypto has eclipsed real estate as one of the bank’s preferred “alternative assets,” or assets that don’t fall into standard categories like equities and bonds.

The latest market collapse, according to JPMorgan, has harmed cryptocurrencies more than other alternative investments, such as real estate.

The strategists wrote: “This trend shows crypto has more room to rebound,” noting that “crypto has more opportunity to rebound.”

As a result, digital assets, along with hedge funds, have replaced real estate as our favoured alternative asset class.

The drop of Luna and UST, however, has dampened the confidence of crypto investors, according to the firm. At the same time, corporate crypto investment is stalling, which might be a huge problem for the market. In a bad market, however, these events are to be expected, and the only thing investors can do is hold their coins and, ideally, dollar cost average them.

The rapid sell-off in Bitcoin and other cryptocurrencies, according to JPMorgan, has outpaced other investment options such as private equity, private debt, and real estate. As a result, the bank thinks “digital assets” have a better chance of recovering than traditional alternative assets. The following was taken from the report:

“Along with hedge funds, digital assets have thus replaced real estate as our favourite alternative asset class.”

JP Morgan also stated that Bitcoin’s fair price is 28% higher than its current value. In the Decentraland metaverse, it also has a lounge. Crypto is only going forward, and it’s incredible to see a worldwide leader in financial services regards crypto to have greater potential than real estate, which is tangible and exists in the physical world.

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Aadrika Sharma

I enjoy writing and try to learn new things every passing day!

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