Amid a period of negativity in the cryptocurrency market, many are wary of Bitcoin, but some unexpected opinions were given by JPMorgan, a bank that previously criticized the cryptocurrency and now claims that digital currency is a preferred alternative.
According to recommendations from JPMorgan, the third-largest US bank believes Bitcoin is undervalued despite the cryptocurrency’s collapse.
The bank points out that the board team has reiterated its view and believes that bitcoin is 28% below its own value. “true value”.
In a note sent to customers this Wednesday (25), JPMorgan also stated that Bitcoin is the “preferred alternative investment” recommended by the bank, over other categories such as private equity, private debt and real estate transactions.
The bank only partnered Bitcoin with Hedge Funds, saying it believes in a “potential” reprice leave.”
Nikolaos Panigirtzoglou, JPMorgan’s strategist made the bank’s confidence in bitcoin’s future even more apparent in the coming months.
“Last month, the cryptocurrency correction looked more like a capitulation than last January/February. in the future we will see a rally for Bitcoin and cryptocurrencies in general,” said Panigirtzoglou.
undervalued bitcoin
The positive review is undoubtedly an important vote of confidence for Bitcoin, which is currently trading at less than half of its highest price of $69,000.
Cryptocurrencies plummeted in 2022, due to rising inflation, rising interest rates, the war in Ukraine and the slowdown of the Chinese economy, causing investors to abandon assets considered risky.
Bitcoin is down nearly 40% this year, pulling the entire cryptocurrency market down and several altcoins taking losses of up to 80%.
JPMorgan said the crisis has hurt cryptocurrencies more than other alternative investments such as private equity, private debt and real estate. This suggests there is more room for cryptocurrencies to recover, according to bank strategists.
In addition to rising interest rates and the fallout from the war in Ukraine, the cryptocurrency market is facing the $50 billion collapse of the TerraUSD (UST) algorithmic stablecoin and the same ecosystem token, LUNA.
Despite Luna’s collapse, which may have painted a negative picture of the industry, the bank’s strategists nevertheless believe there are few signs that the cryptocurrency market will stop growing.
Another point that JPMorgan brought up is that, unlike 2018 and 2019, which had a prolonged crypto winter, this time there is a lot more institutional investment interests and also venture capital going into cryptocurrencies.
This will be an important tool to make the selling pressure not so heavy and so long lasting.
The fact that JPMorgan – which has previously criticized Bitcoin investment – is betting on digital currencies as a preferred form of investment, even in the crypto market’s “cold” moment, is undoubtedly an important indicator that at least confidence in the largest cryptocurrency in the world. world is increasing.
Source: Live Coins
John Cameron is a journalist at The Nation View specializing in world news and current events, particularly in international politics and diplomacy. With expertise in international relations, he covers a range of topics including conflicts, politics and economic trends.
