JPMorgan Says Bitcoin Should Be 28 Percent Above Current Value
The bank said that there was no shortage of venture capital funding in crypto.
The price of bitcoin is down 37% so far this year
The bank said that soon the market may see improvement.
JPMorgan, the US bank, has predicted a recovery for the bitcoin and cryptocurrency markets.
For the past few days, there has been a recession in the cryptocurrency market, due to which even bitcoin is not untouched.
Its price is continuously declining.
In such a situation, the statement of JP Morgan gives hope for investors.
This US financial institution has said that cryptocurrencies have replaced investment assets such as real estate in the recent past.
That's why we are now replacing cryptocurrencies as alternative assets.
But, at the same time, the bank has quoted the fair price of bitcoin as 28% higher.
JPMorgan has said that bitcoin should be 28 percent above its current value.
This means that the bank wants to see bitcoin at $38,000 (approximately Rs 29.49 lakh) which is a reasonable price level.
Talking about this week, the price of bitcoin has dropped significantly.
The world's largest cryptocurrency is still showing in red color on the crypto price tracker.
The global price of bitcoin is trading at $29,000 (approximately Rs 22.5 lakh) while on Indian exchange Coinswitch Kuber it is trading at $30,736 (approximately Rs 24 lakh) which is a decline of 1.24 per cent in the last 24 hours.
According to data from CoinGecko, Bitcoin has lost 5.1 percent in week-to-day performance.
The US bank said that cryptocurrencies have grown rapidly in the recent past and have replaced assets such as real estate.
In the coming days, the bank has predicted a correction for bitcoin.
The bank says that the cryptocurrency market will once again move towards the edge and the price of bitcoin can see a lot of improvement in the coming days.
Cryptocurrencies started coming down from the beginning of 2022 between Russia and Ukraine war.
Still this trend of decline continues.
The reason for this is also being said to be inflation and increase in interest rates.
Apart from this, due to the recession in China, investors started turning away from risky assets like cryptocurrencies.
Talking about the performance of cryptocurrencies, the price of bitcoin has fallen by 37% so far this year.
There has also been a big decline in the total value of the cryptocurrency market.
Where it was $ 232 trillion in November last year, it has come down to $ 108 trillion in May 2022.
JPMorgan has said that the selloff has caused losses to cryptocurrencies as much as other investment assets such as private equity, private debt and real estate have not.
But, there is still a lot of hope for a correction for cryptocurrencies.
In a big statement, the bank said that instead of real estate, we give priority to digital assets as alternative assets.
The sentiments of investors have been hurt due to the huge drop in the TerraUSD stablecoin and its associated LUNA cryptocurrency.
But this does not mean that there is a lack of venture capital funding in crypto.