JPMorgan Sets Bitcoin’s Fair Value at $35,000

JPMorgan analysts have set the fair value of Bitcoin at $35,000. If the volatility of the first cryptocurrency halves, bank analysts consider the $73,000 target justified, writes Bloomberg.

JPMorgan forecast digital currencies to grow about 15% a year in 2022, ahead of real estate (12.5%), hedge funds (7.5%), and equities (5%).

Analysts say the high volatility of cryptocurrencies reduces their attractiveness for investors. The bank believes digital currencies should not be recommended as a core asset.

“This calls into question the idea that Bitcoin’s target of $100,000 or higher, which had become a widely accepted forecast for 2022, is attainable without a substantial decline in volatility. Digital assets are in a multi-year uptrend, but the current entry point looks unattractive,” according to the JPMorgan report.

At the time of writing, the cryptocurrency market capitalization stood at $2.88 trillion, according to CoinGecko. Bitcoin trades near $63,100, and Ethereum has reached a new all-time high above $4,600.

Earlier in October, JPMorgan analysts said that inflation concerns were the main driver of Bitcoin’s rally, not the hype surrounding the first Bitcoin futures ETF.

Earlier, JPMorgan chief Jamie Dimon again criticized digital gold, but acknowledged that clients of the financial group hold a different view.

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