JPMorgan Places Bitcoin’s Fair Price At $38,000, 28% Higher Than Its Current Level Of Around $29,500
JPMorgan has placed Bitcoin’s (BTC) fair price 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.
The report stated:
"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."
Bank strategist Nikolaos Panigirtzoglou was the lead author of that document. A bank investors’ note placed Bitcoin’s fair value at the same level in February. It was trading at around $43,000 at that time.
The note stated:
"Thus far, there is little evidence of VC [venture capital] funding drying up post-Terra’s collapse. Of the $25 billion VC funding year-to-date, almost $4 billion came after Terra. Our best guess is the VC funding will continue and a long winter similar to 2018/2019 would be averted."
It has been reported that on the same day, major venture capitalist Andreessen Horowitz announced the closing of its fourth cryptocurrency fund at $4.5 billion. Also on Wednesday, crypto-focused venture firm NGC Ventures launched its third blockchain fund with $100 million raised from investors that included Babel Finance, Huobi Ventures, and Nexo Ventures.
Thus, JPMorgan CEO Jamie Dimon has repeatedly expressed his personal antipathy toward 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 has praised crypto for its cross-border payment facility.