Bitcoin is facing serious resistance at $30,000 and some analysts believe it will continue to decline from here. A Wall Street banking giant, JPMorgan, is projecting a positive, 28 percent rise for Bitcoin relative to current prices.
JPMorgan: Bitcoin’s “true value” is $38,000
In a letter to investors, JPMorgan analysts stated that $38,000 is a “reasonable price” for Bitcoin. Also, the bank is optimistic about the future of the market. The note reads:
Last month’s crypto market correction looks more like a capitulation than last January/February, and looking forward we see more generally upside for Bitcoin and the crypto market.
JPMorgan prefers cryptocurrencies over real estate
Bitcoin and cryptocurrencies are among the “alternative investments” recommended by the company. According to JPMorgan, cryptocurrencies have seen a larger correction than other asset types such as private debt, private equity and real estate. The bank’s strategists have this to say:
That’s why we’re replacing real estate with cryptocurrencies as our favorite alternative asset class alongside hedge funds.
Bitcoin and other cryptocurrencies have been severely impacted by the global financial landscape. As the Fed prepares to raise interest rates in the face of rising inflation, investors are transferring money to risk OFF assets. But despite the recent drop, some of the world’s wealthiest investors continue to support Bitcoin. Billionaire hedge fund manager Ray Dalio said he still believes in Digital Gold Bitcoin as an alternative asset class. Bill Miller, a billionaire, said he held Bitcoin holdings and never sold them during the current market downturn.
What market analysts are saying for Bitcoin
Low trading activity is gaining importance as analysts predict volatility will return. Analyst Dylan LeClair described the situation as “eerily calm” based on volatility data.
Michaël van de predicting a move towards $32,800 on May 25 Poppe says a breakout from the current price zone will be “relatively soon”.
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