JPMorgan has placed the fair price of Bitcoin (BTC) at $38,000, which is 28% higher than its current level of around $29,500, according to a note the bank issued to clients on Wednesday. “Last month’s cryptocurrency market correction looks more like a capitulation relative to last January/February and going forward we see bullishness for Bitcoin and crypto markets in general,” the note reads. the bank strategist Nikolaos Panigirtzoglou was the main author of that document.
A note from the bank’s investors placed the fair value of Bitcoin at the same level in February. At that time it was trading around USD 43,000.
Cryptocurrencies have overtaken real estate as the bank’s preferred ‘alternative asset’, along with hedge funds, follows the note. Says:
“So far, there is little evidence that VC funding [capital de riesgo] it is drying up after the collapse of Terra. Of the $25 billion of venture capital funding so far this year, almost $4 billion came after Terra. Our best guess is that VC funding will continue and a long winter similar to 2018/2019 would be avoided.”
VC funding would be critical to avoiding such a crypto winter, he added.
On the same day, leading venture capitalist Andreessen Horowitz announced the closing of his Crypto Fund IV with $4.5 billion. Also Wednesday, crypto-focused venture firm NGC Ventures launched its third blockchain fund with $100 million raised from investors including Babel Finance, Huobi Ventures and Nexo Ventures.
JPMorgan CEO, Jamie Dimon has repeatedly expressed his personal rejection of cryptocurrencies, calling them fraud. but the bank itself has taken a more practical stance. Earlier this year it became the first big bank in the Metaverse. Dimon has praised cryptocurrencies for their ease of cross-border payment.
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