Bitcoin buyers have been swept up out there carnage this 12 months, however these nonetheless holding on ought to count on no less than 30% upside to the cryptocurrency from right here, in keeping with JPMorgan strategist Nikolaos Panigirtzoglou. He reiterated in a word this week that bitcoin’s honest worth is on the $38,000 degree, which means upside of about 32% for the cryptocurrency from the place it is buying and selling. On Friday at 12:30 p.m. ET, it traded at round $28,687. The strategist stated the identical factor in February , when bitcoin and danger belongings extra broadly had been nonetheless on their method down. “The bitcoin to gold vol ratio has declined modestly in the direction of 4x, which in our framework would advised an unchanged honest worth of round $38,000 implying vital upside for digital belongings from right here,” Panigirtzoglou stated in a word this week. A most well-liked different asset class He additionally stated digital belongings have changed actual property because the agency’s “most well-liked different asset class together with hedge funds.” Public markets have already priced in recession dangers, whereas digital belongings went by means of repricing after the collapse of the stablecoin TerraUSD earlier this month, Panigirtzoglou stated. “A possible lagged repricing retains us extra cautious on non-public fairness, non-public debt and actual property over the approaching quarters,” he stated. Bitcoin hit its longest-ever weekly shedding streak — eight weeks — this month and market sentiment has been dismal amid a broader sell-off in danger belongings this 12 months and the beautiful blow-up of one among crypto’s hottest tasks , TerraUSD. Most crypto buyers and observers arrived to the market throughout or after the 2018-2019 “crypto winter.” Bitcoin has greater than halved since hitting its all-time excessive of $68,982.20 in November. It was buying and selling in a decent vary this 12 months earlier than falling beneath $30,000 this month after the Terra collapse. Enterprise capital funding of crypto tasks is essential to the digital asset market, Panigirtzoglou stated, and will assist it keep away from an prolonged “crypto winter” just like the one in 2018. Seasoned crypto buyers usually say that these bearish durations are optimum for constructing new tasks to have prepared for the subsequent bull run. “To this point there may be little proof of VC funding drying up submit Terra’s collapse,” Panigirtzoglou stated. “Of the $25 billion VC funding YTD, virtually $4 billion got here after Terra. Our greatest guess is the VC funding will proceed and an extended winter just like 2018/2019 can be averted.”
JPMorgan sees upside for bitcoin after recent washout
RELATED ARTICLES