Friday, December 3

JP Morgan: bitcoin should be around $ 35,000 right now

Key facts:
  • Experts predict 15% growth for digital assets next year.

  • The “sharp swings” of cryptocurrencies “diminish their appeal” to investors.

One of the largest financial services firms in the United States (US) and the world, JP Morgan Chase & Co., claims that the price of bitcoin (BTC), the leading cryptocurrency in the market, should be around USD 35,000 and not the $ 64,000 that is currently trading.

This, due to the characteristic volatility of BTC, which is currently about four times larger than gold, the traditional reserve asset. This is indicated in a note several strategists of the bank.

In fact, they say that if the relative volatility of the currency is cut in half for next year, “So a price target of $ 73,000 seems reasonable.” This Wednesday, November 3, 2021, a bitcoin is trading at USD 63,138.22, according to the average of the CriptoNoticias price calculator.

According to the quoted note from Bloomberg, experts, even with that estimate, predict 15% growth for digital assets over the next year, which would double the projected return for hedge funds and beating the 12.5% ​​gains they see for real estate.

But, indistinctly, they clarify that the “sudden oscillations” of cryptocurrencies “diminish their attractiveness” among investors.

This challenges the idea that a price target of $ 100,000 or more, which appears to be the current consensus for 2022, is a sustainable bitcoin target in the absence of a significant decrease in volatility. Digital assets are on a multi-year structural ascent, but the current entry point looks unappealing.

Strategists at JPMorgan Chase & Co.

USD 35,000 was the average price of BTC in July, when the Chinese onslaught / Source: CoinMarketCap.

An uneven posture

The firm’s estimate for the current price of BTC contrasts somewhat with what was announced a few months ago, when even with the ups and downs of the cryptocurrency, expanded their services related to trading.

It was in July, when JP Morgan extended the service to trade bitcoin and cryptocurrencies to all its clients, in what was a violent turn in their opinion, given the organization’s history of questioning. against cryptocurrency.

Since then, brokers in the bank’s wealth management division can accept buy and sell orders for up to five bitcoin-related corporate products and other digital assets, according to a report by CriptoNoticias.

And before, strategists of that bank recommended to their clients an exposure of at least 1% of an investment portfolio in bitcoin, as a way to obtain profits with a low risk, just at a time when the currency was trading red.

Then in August, the private banking unit of JP Morgan Chase offered its clients a bitcoin fund, in association with the New York Digital Investment Group (NYDIG), according to internal bank sources.

According to what is reported in this newspaper, the fund is presented to clients as the “safest and cheapest” bitcoin investment vehicle, among those available in private markets.

The funny thing is that all these positive news came some time after that same bank was one of the fiercest enemies of the first cryptocurrency on the market, without that supposing to stop making continuous follow-up.

The bank’s CEO, Jamie Dimon, has always shown a stance opposed to BTC and cryptocurrencies, which he came to call them “fraud.” He even suggested that bitcoin would not work for long, because he did not see possible that the world would allow itself to circulation of coins without state supervision.

It’s been four years since Dimon predicted a dark future for BTC. However, it does not seem to have been correct: it already exceeds USD 60,000, it is legal tender in a country and it is gaining more and more spaces in the World economy.

Bitcoin reaches various banks around the world

What JP Morgan says about bitcoin is relevant, recognizing the importance of that financial institution, ingratiated as one of the largest in the world.

Little by little, large financial institutions incorporate bitcoin among their products. A similar situation, in relation to the adoption of cryptocurrency, occurred in Australia, with the Commonwealth Bank (CBA), of great significance in that country, and that today wednesday it was opened wide to bitcoin.

As we reported hours ago, this institution announced on November 3 that, through its mobile application, its more than 6 million customers will be able to buy, sell and store bitcoin and other cryptocurrencies.

In a bid to reach a young clientele, who take refuge in PayPal and Square for operations related to cryptocurrencies; the bank will promote a dedicated service from next year.