JPMorgan thinks Bitcoin’s (BTC) ‘honest price’ is $35,000

Wed 03 Nov 2021 ▪ 12h09 ▪ 3 min read — by James Taylor

American multinational financial institution JPMorgan has pinpointed the ‘real’ value of Bitcoin, and it is much lower than the one at which the asset has been trading recently. Nevertheless, the company’s actions show that it has high hopes for BTC in 2022.

In a report back to buyers as part of the financial institution’s inaugural outlook involved in selection investments, strategists noted that crypto-related assets “must proceed to outperform into 2022.”

In addition, the company stated that Bitcoin’s ‘honest price’ is about $35,000, which is 45% less than its present buying and selling price of $62,811 (as of this writing). However, if relative volatility persists over the next 12 months, Bitcoin may well reach $73,000, strategists added, but definitely not the level some investors expect.

Is it too late to invest in Bitcoin?

Experts noted that the current value of the asset “appears unattractive,” but cryptocurrencies are on a “multi-year structural ascent.”

Analysts have concluded that assets, which include non-public debt and private funds, will grow by 11% in the next twelve months. At the same time, the report advised against using cryptocurrency as the main storage of funds due to its volatility.

JPM strategists have warned their clients about crypto volatility before. But despite this, in September, after the August bull run, the total capitalisation of cryptocurrencies reached $2 trillion. And two months later, according to CoinGecko, their market capitalisation increased by 35% to $2.87 trillion.

Jamie Dimon VS the company’s policy

In September 2021, JPMorgan CEO Jamie Dimon said that Bitcoin could still grow tenfold, but he still wasn’t planning to invest in it. Dimon also said that BTC will become ‘nugatory’ in the next months.

The bank’s wealthy clients are obviously more interested in Bitcoin than in its CEO, and in July 2021, they were granted access to this crypto asset. In early October, JPMorgan analysts noted that institutional investors prefer Bitcoin to gold as a hedge against inflation.

Despite the fact that institutional investors’ demand for Bitcoin is still relatively low, many believe that cryptocurrency is great for diversifying your portfolio. Plus, amid the financial crisis and the stock market collapse, many people seriously considered buying Bitcoin to safeguard against inflation or bankruptcy.

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James Taylor

Trends are temporary. The blockchain isn’t a trend; it’s the future. I want to help as many people as possible understand it in a simple, clear and interesting way.


The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.

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