JPMorgan has put an official price for Bitcoin – one that is actually around half of the current price for which the King of Crypto is changing hands.
The multinational investment bank made the statement in a report to investors as part of the inaugural outlook of the bank that is focusing on alternative investments, further adding that it “should continue to outperform in 2022.”
JPMorgan believes that the “fair value” of Bitcoin is about $35,000 based on the price model of the company which is a number 45% lower than the current trading price of $63,281. The strategists think that a price target of $73,000 is reasonable in case that the relative volatility would continue into 2022.
“This challenges the idea that a price target of $100K or above, which appears to be the current consensus for 2022, is a sustainable Bitcoin target in the absence of a significant decline in Bitcoin volatility.”
The strategists say that the current entry point “looks unattractive,” but that crypto assets are on a “multiyear structural ascent.”
They also predict that the alternative asset class will have a return of 11% in 2022 but still don’t see crypto as a “core holding” due to its volatility.
The bank has issued a warning in September regarding volatility after the bullish market activity recorded in August which pushed the total crypto capitalization to $2 trillion. But now the market cap has grown by 35% to $2.87 trillion.
Jamie Dimon Is Not a Fan
The CEO of JPMorgan, Jamie Dimon, declared in late September that the price of Bitcoin may increase by 10 times, but that he doesn’t have any interest in it; in October, he actually went on to say that Bitcoin is “worthless.”
Then again, its retail wealth clients have a big interest in it, which made the bank offer them access to the crypto asset this summer. Furthermore, the bank revealed last month that institutional investors were actually preferring Bitcoin over gold when it comes to usage as a hedge against inflation.