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JPMorgan Is Replacing Real Estate With Cryptocurrencies As The Favorite Alternative Asset Class: Here’s Why

Following a sharp decline in cryptocurrency prices, JPMorgan said Bitcoin’s fair price is 28% higher than its current level, implying that there is “considerable upside from here” for the leading cryptocurrency by market capitalization.

In a note released Wednesday, May 25, the bank said cryptocurrencies noted the bank outperformed real estate as one of its favorite “alternative assets,” according to a report by Market Insider.

Alternative assets are investments that are not conventionally classified as stocks and bonds, while the bank also said it remains firm on its stance that a reasonable price for Bitcoin is $38,000. On Wednesday morning, the number represented a 28% increase to Bitcoin’s level of $29,700.

At the time of writing, the flagship currency was trading at $29,616.22, down 0.53% in the last 24 hours.

The note also contains the opinions of the American banking giant’s strategists, including Nikolaos Panigirtzoglou:

The correction of the mirror calculation of the crypto market compared to last January/February. They think we can see the rise of Bitcoin and crypto markets in general.

Further adding, the market analyst said that as a result, they are replacing real estate with cryptocurrencies as the preferred alternative asset class and hedge fund.

2022 Crypto Market Downtrend

Investors are abandoning assets considered risky due to rising inflation and interest rates, the conflict in Ukraine and other similar factors. This has led to a decline in the value of digital assets in 2022.

Bitcoin prices have fallen 37% since the start of the year, while the global market capitalization has lost approx. $1 trillion. The total market value of all cryptocurrencies has decreased significantly.

JPMorgan also said the sale was found to be more detrimental to the value of digital assets than other alternative assets like real estate, private equity or private debt.

Market experts have also mentioned that it could be because there are more opportunities for recovering cryptocurrencies.

Nancy J. Allen
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