JPMorgan Chase (JPM), the world’s biggest bank by assets, has reaffirmed its price target on Bitcoin (BTC) and said that it sees “significant upside” for the world’s largest digital token.
In a bullish note to clients, JPMorgan maintained its price target on Bitcoin at $38,000 U.S., which is 31% higher than where the digital coin currently trades. JPMorgan said it sees “significant upside for digital assets from here,” referring to the entire cryptocurrency market.
Bitcoin is currently trading right around $29,000 U.S, down more than 25% in the last month, and down 40% year to date. The price of Bitcoin peaked at $68,000 U.S. last November.
While JPMorgan’s 12-month price target for Bitcoin is $38,000 U.S., its strategists have said that their long-term theoretical target price for the biggest cryptocurrency is $150,000 U.S.
In addition, JPMorgan said cryptocurrencies are now its “preferred alternative asset class,” replacing real estate amid soaring mortgage rates.
JPMorgan detailed that the recent market downturn hurt cryptocurrencies more than other alternative investments, and that the decline sets up digital coins and tokens to rebound in coming months.
The JPMorgan note follows a massive selloff in the cryptocurrency market amid the implosion of cryptocurrency Terra (LUNA) and algorithmic stablecoin Terrausd (UST).
The strategists noted that while the dramatic collapse of the two cryptocurrencies has weakened the sentiment of many cryptocurrency investors, there was little sign that venture capital funding in the cryptocurrency sector is slowing down.
Major venture capital firm Andreessen Horowitz announced earlier this week the launch of a new $4.5 billion U.S. cryptocurrency fund.
