JPMorgan says Bitcoin fair value is $38,000 under one condition

  • Bitcoin price is currently below its fair value, according to JPMorgan making BTC one of the bank’s preferred alternative investments. 
  • The banking giant believes there is room for the digital asset class to rebound, unlike other alternative assets. 
  • Benjamin Cowen, a leading crypto analyst believes Bitcoin price could plummet to a lower low, and the trend could follow the crypto winter of 2018. 

JPMorgan, global financial services leader, believes that at $38,000 Bitcoin is below its fair value. The sell-off has been steeper in the case of Bitcoin compared to other cryptocurrencies, and there is room for a rebound in the asset. 

Also read: Why renowned technical analysts believe Bitcoin price has bottomed out

Bitcoin price fair value is $38,000 according to JPMorgan strategists

Strategists at leading American multinational bank JPMorgan believe Bitcoin is below its “fair price.” In a note on Wednesday, the banking giant referred to Bitcoin as a preferred alternative investment. 

JPMorgan believes Bitcoin’s fair price is 28% higher than the current level and the asset has a significant upside after the crypto market bloodbath. The bank argues that cryptocurrency is now a preferred alternative investment, ranked higher than real estate. 

Nikolaos Panigirtzoglou, strategist at JPMorgan, writes in the note:

The past month’s crypto market correction looks more like capitulation relative to last January/February, and going forward; we see upside for bitcoin and crypto markets more generally.

Institutions have deemed cryptocurrencies risky, and demand has dried in 2022, with tighter monetary policies and high inflation in the US. 

Despite the steep sell-off and the US Federal Reserve’s monetary policy tightening, strategists at JPMorgan are bullish on Bitcoin. Therefore, the bank envisions more room for rebound in Bitcoin than other alternative assets. 

Strategists mentioned in the note,

We thus replace real estate with digital assets as our preferred alternative asset class along with hedge funds.

JPMorgan is bullish on Bitcoin

Strategists at the banking giant revealed that Bitcoin’s discounted valuation is part of the reason why JPMorgan has a more optimistic outlook for the digital currency in the long term. 

The past month’s crypto market correction looks more like capitulation relative to last January/February and going forward we see upside for bitcoin and crypto markets more generally.

Despite their bullish outlook on Bitcoin price, the banking giant believes if Venture Capital funding dries up from a loss of confidence in crypto after Terra’s LUNA colossal crash, a repeat of the long winter of 2018 is likely. 

Benjamin Cowen argues Bitcoin price trend reversal could take weeks

Leading crypto analyst and trader Benjamin Cowen argues that every milestone in a bear market has been hit in the Bitcoin price trend. Cowen believes that a Bitcoin price move back up to the 200-day moving average could be weeks away. 

Cowen revealed that it could take months before $25,000 is confirmed as a bottom, similar to the 2018 Bitcoin price trend. He disagrees with JPMorgan’s bullish outlook, and argues that Bitcoin dominance could increase if BTC remains range-bound for a few more days. Until then, Bitcoin price could plummet lower or trade sideways. 

Bitcoin prepares for a rally while Litecoin price could plummet 

Despite the bullish outlook for Bitcoin, cryptocurrency analysts at FXStreet have evaluated the Litecoin price trend and predicted a sharp decline in the altcoin’s price. Adopting a somewhat contrarian stance, analysts believe Litecoin price could break into a downtrend soon.