JPMorgan Estimates Bitcoin’s Fair Value
JPMorgan Chase & Co. stated in a statement that they published recently that the fair value is higher by 28 percent over its present level. The analyst at JPMorgan, Nikolaos Panigirtzoglou, stated in a report that “The previous month’s cryptocurrency market downturn appears somewhat like capitulation compared to prior January/February,” and that “moving ahead, we anticipate significant upside for Bitcoin and cryptocurrency markets more broadly.”
According to JPMorgan, the current market for cryptocurrencies has been hit worse than the markets for other unconventional assets including real estate, private equity, and private debt. The investment company believes that, despite the fact that prices have begun going back up, there is much more opportunity for the cryptocurrency industry to recoup.
On June 18, the price of bitcoin fell to a low of $17,708.52, although it has already recovered 20 percent of its previous loss. Despite this, the leading cryptocurrency is still trading at a level that is 69 percent lower than its all-time high of $68,789.63.
JPMorgan continues to stand by its estimate from May, which placed Bitcoin’s “fair value” at $38,000, which is higher by 28 percent than its prevailing price on the market. The total value of all cryptocurrencies on the planet dropped from more than $2.8 trillion in November last year to approximately $955 billion while writing this article.
The analysts at JPMorgan, on the other hand, do not feel that the recent market drop has resulted in irreparable harm to the crypto field. Bitcoin was changing hands at $21,266 at the time of this writing, which represents an increase of 0.46 percent in the previous twenty-four hours. This contributes to a solid week for BTC, which has increased by more than 8 percent in the previous seven days.