JPMorgan has fair-priced Bitcoin (BTC) at $38,000, 28% higher than its current level of around $29,500, according to a note the bank released to clients on Wednesday. “Last month’s crypto market correction looks more like a capitulation compared to last January/February and going forward, we see an upside for Bitcoin and crypto markets more generally,” the note reads. Bank strategist Nikolaos Panigirtzoglou was the main author of this document.

A note from bank investors put Bitcoin’s fair value at the same level in February. It was trading around $43,000 at the time.

Crypto has overtaken real estate as the preferred “alternative asset” for banking, along with hedge funds, the note continues. It said:

“So far, there is little evidence of VC [venture capital] funding dries up after Terra’s collapse. Of the $25 billion in VC funding year-to-date, nearly $4 billion has come after Terra. Our best guess is that venture capital funding will continue and a long winter similar to 2018/2019 would be avoided.

Venture capital funding would be key to avoiding this crypto winter, he added.

On the same day, top venture capitalist Andreessen Horowitz announced the closing of his fourth cryptocurrency fund at $4.5 billion. Also on Wednesday, crypto-focused venture capital 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 antipathy towards cryptocurrency, going so far as to call it a fraud, but the bank itself has taken a more practical stance. It became the first major bank in the Metaverse earlier this year. Dimon praised the crypto for its ease of cross-border payment.

Leave a Comment

Your email address will not be published.

%d bloggers like this: