The American multinational investment bank JPMorgan has priced Bitcoin and it is much lower than the asset it is currently trading for.
In a report to investors as part of the bank's inaugural outlook focused on alternative investments, strategists stated that alternative assets that include cryptocurrencies "should continue to perform better in 2022."
They also claimed that Bitcoin's "fair value" is around $ 35,000 based on the company's pricing model, which is roughly 45% lower than its current trading price of $ 63,281. However, a $ 73,000 price target seems reasonable if relative volatility continues into the next year, strategists additionalBut not the towering goals that many hope for.
"This challenges the idea that a price target of $ 100K or more, which appears to be the current consensus for 2022, is a sustainable target for Bitcoin in the absence of a significant decrease in Bitcoin's volatility."
They did suggest that the current entry point "looks unappealing", but crypto assets are on a "multi-year structural ascent."
Analysts concluded that the alternative asset class, which includes private debt and private equity, will yield 11% next year, double the 5% gain for equities and fixed income. However, they did not recommend cryptocurrencies as a "main holding" due to their volatility.
Related: JPMorgan Sounds Alarmed By 'Sparkling' Crypto Markets After August Boom
JPM strategists warned of volatility in early September following bullish market activity in August, which caused the total crypto capitalization to exceed $ 2 trillion in late August. Two months later, that market cap has risen 35% to $ 2.87 trillion according to CoinGecko.
In late September, JPMorgan CEO Jamie Dimon said that Bitcoin prices could still rise tenfold, but you are not interested in investing in it. He also said the asset was "useless" the following month.
The bank's retail wealth clients are clearly interested in it and were granted access to crypto asset class in July. In early October, JPMorgan strategists noted that institutional investors were favoring Bitcoin over gold as a hedge against inflation.
Wall Street investment bank Morgan Stanley has also been providing analysis on crypto assets. On November 1, the bank released a report for its wealth management clients detailing industry trends, crypto market metrics, and potential regulatory impacts.
Morgan Stanley is one of the top investment banks, including JPMorgan, Wells Fargo, UBS, Citigroup, and Goldman Sachs, which have been scrambling to hire crypto experts recently according to reports.
