Analysts at JPMorgan Chase & Co have reportedly forecast potential upside for Bitcoin BTC/USD and other cryptocurrencies in the months to come.
What Happened: In a Wednesday research note to investors seen by Forbes, JPMorgan strategists, led by Nikolaos Panigirtzoglou, placed Bitcoin’s “fair value” at $38,000, 28% higher than its current market price.
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“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,” the note said, as per the report.
The bank also noted that cryptocurrencies had surpassed real estate as a preferred alternative asset.
The global cryptocurrency market cap fell from over $2 trillion in April to around $1.2 trillion at press time. Bitcoin, Ethereum ETH/USD, and other cryptocurrencies came under intense selloff pressure after the collapse of the Terra LUNA/USD ecosystem earlier this month.
JPMorgan analysts, however, do not believe the incident caused irrevocable damage to the cryptocurrency space, according to Forbes.
“Thus far, there is little evidence of VC funding drying up post-Terra’s collapse. Of the $25 billion VC funding [year to date], almost $4 billion came after Terra,” the analysts were quoted as saying.
“Our best guess is the VC funding will continue and a long winter similar to 2018/2019 would be averted. Yet if this funding dries up, a long winter could be on the cards.”
One VC firm that appears unfazed by Bitcoin’s eight-week-long red streak is Andreessen Horowitz (a16z). The firm announced that it had closed $4.5 billion for its fourth cryptocurrency fund.
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Price Action: According to data from Benzinga Pro, BTC was trading at $29,680, down 0.25% in the last 24 hours.