Notorious crypto critic JPMorgan is showing further support for cryptocurrencies as a legitimate asset class with a recent note published, acknowledging cryptocurrency and Bitcoin as its “Preferred Alternative Asset Class”.
JPMorgan CEO Jamie Dimon has not been shy in his negative criticisms of Bitcoin and digital assets, going as far as calling Bitcoin a “fraud” in 2017, also stating it was “worthless.”
His firm has since changed its stance on cryptocurrencies in a big way, as they were the first major bank to open up shop in popular Metaverse Decentraland, and created their own digital coin for payments simply named JPM Coin.
After a steep decline in cryptocurrency prices, JPMorgan has said that the fair price of Bitcoin is 28% higher than its present level, and implied that there is “considerable upside from here.”
In a note published on Wednesday, May 25, the banking giant said that cryptocurrencies had surpassed real estate as one of its favoured “alternative assets,” according to a report by Market Insider.
Alternative assets refer to investments that do not fit into traditional categories like stocks and bonds, with JPMorgan stating that a reasonable price for Bitcoin is $38,000, a 28% rise from where it is today.
JPMorgan strategist Nikolaos Panigirtzoglou noted:
“The past month’s crypto market correction looks more like capitulation relative to last January/February and going forward we see upside for Bitcoin and crypto markets more generally.”
Time will tell if the bank’s bullish prediction for Bitcoin will play out.