Wednesday, December 8

JPMorgan: “Bitcoin should be around $ 35,000”

According to the US-based investment bank JPMorgan, the fair value of Bitcoin (BTC) is $ 35,000.

The banking giant, JPMorgan argued that higher prices are not attractive. Despite the possibility of a further hike.

However, JPMorgan believes that Bitcoin (BTC) could top $ 100,000 by 2022. Unless there is a big drop despite these pronouncements.

To recall, last month, JPMorgan CEO Jamie Dimon made the crypto community impatient by tell que Bitcoin «it’s useless, it’s worthless».

Importantly, although Jamie Dimon does not believe in Bitcoin, he clarified that his clients are adults. And who does not want to be a spokesperson on the matter.

«If they want access to buy or sell Bitcoin, we cannot guard it. But, we can give them legitimate access, as clean as possible».

Bitcoin overvalued, should be around $ 35,000, according to JPMorgan

According to Bloomberg, JPMorgan claims that the fair value of Bitcoin (BTC) is $ 35,000. 44% lower than its current price of $ 63,000.

By the way, your estimate is based on the volatile nature of cryptocurrencies and their comparison to gold. Currently, Bitcoin is four times more volatile than gold.

According to the researchers, if relative volatility halves in the next year, then a price target for Bitcoin of $ 73,000 seems reasonable.

«The volatility 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 decline due to strong fluctuations in the price of Bitcoin.».

In this regard, Peter Thiel, billionaire and co-founder of PayPal, also opined that Bitcoin could be overpriced above $ 60,000. Basing, that its high valuation could be a sign of uncontrolled inflation.

Real estate instead of cryptocurrencies

In the eyes of JPMorgan strategists, real estate, especially industrial and residential properties, benefits from the expanding economy. At a rate above trend.

«Cryptocurrencies can move forward. But the ride is likely too bumpy to recommend as a core item.».

Although JPMorgan expects cryptocurrencies to continue to rise by 2022, it advises investors to avoid volatile assets and take the housing market.

In other words, JPMorgan expects real estate to increase in price. Due to the improvement of economic growth expectations.

«Investors with cash should consider placing it in real estate. Since stocks and bonds will underperform next year».

To top it off, JPMorgan says that cryptocurrencies are not attractive at current prices. But, see more advantages.

I retire with this phrase from Michael Saylor: «To get rid of the risks, you have to take one. Bitcoin».