JPMorgan Says Crypto Not Attractive At Current Prices, But Sees More Benefits
U.S. banking titan JPMorgan claims that Bitcoin’s fair value is $35,000, which is 44% lower than its current price tag of $63,300, Bloomberg report.
Its estimate is based on comparing the volatility of cryptocurrency to that of gold.
Presently, Bitcoin is four times more volatile than the lustrous metal.
JPMorgan says the high prices are “unattractive” despite the fact that there is probably more potential in the store.
As reported by U.Today, billionaire Peter Thiel also opined that Bitcoin could be overpriced above $60,000, claiming that its enormous valuation could be a sign of out-of-control inflation.
That being said, the banking giant estimates that the major cryptocurrency could surpass $ 100,000 in 2022 unless its volatility drops significantly:
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
JPMorgan CEO Jamie Dimon pissed off the cryptocurrency community last month after calling Bitcoin “worthless.”
Real estate instead of crypto
JPMorgan expects crypto to continue marching higher in 2022, predicting a modest 15% increase.
Still, the banking giant is advising investors to avoid the volatile asset class in favor of the real estate sector.
JPMorgan expects both residential and commercial properties to go up in price due to improving expectations of economic growth.
