Bank giant JP Morgan said in a note Wednesday that Bitcoin and cryptocurrencies are currently one of its preferred “alternative” investments. Markets Insider report.
Assets that are considered at risk, Often includes Bitcoin In the minds of experts and institutional investors It plummeted in 2022 middle Tighter monetary policy When Decades-High Inflation In the United States and around the world.
but, Bitcoin suddenly sold out, Like other cryptocurrencies, is more profound than other alternative investments such as private equity, private debt and real estate, JP Morgan said. Therefore, banks believe that the “digital assets” class has more room for rebound than other alternative assets.
“Thus, we will replace real estate with digital assets as our preferred alternative asset class with hedge funds,” the bank strategist wrote according to the report.
JP Morgan strategists reportedly stick to the view that banks have a fair price of Bitcoin of $ 38,000, about 27.5% higher than $ 29,798 at the press on Wednesday morning. .. Bitcoin discount valuations are part of the reason banks have a more optimistic outlook for future digital currencies.
“Last month’s crypto market revision looks like a surrender compared to January / February last year, and we expect Bitcoin and the crypto market to be better in the future,” the report said. ..
Despite the growing attractiveness of the sector, JP Morgan is reported to have switched Bitcoin and cryptocurrencies from “overweight” rankings to “underweight” rankings. That is, banks are less enthusiastic about the asset class and recommend lower ones as investment portfolio exposures.