American investment bank JPMorgan stated that the fair price of Bitcoin is $35K which is roughly 45% lower than its current price tag of $63K.
Experts have stated that Bitcoin is a volatile, highly speculative asset that has no intrinsic value.
Since its inception, crypto coin has gone through several boom and bust cycles. As of now, the coin is trading at $63K.
JPMorgan Claims Fair Price Of Bitcoin
JPMorgan has put a fair price on Bitcoin. They said that its fair price is $35K. The current market price of the coin is trading at roughly 45% higher than the price that the investment bank claims.
Earlier the bank mentioned that Bitcoin is appearing to be a better hedge against inflation than gold.
Many market participants believe that Bitcoin is still undervalued and should be well over 100K. However, JPMorgan said that Bitcoin can hit the $100K mark in 2022 unless its volatility sees a major drop.
The bank has estimated Bitcoin’s fair price by comparing its volatility to that of gold. Currently, Bitcoin is four times more volatile than the lustrous metal. The bank also stated that the high prices are unattractive despite noting that there is likely more upside in store.
The strategists said that the coin could climb as high as $73,000 if markets remain frothy. The bank expects Bitcoin to increase by 15% in 2022.
Jamie Dimon, CEO of JPMorgan, said that Bitcoin prices could still increase by ten times, but he isn’t interested in investing in it. He also said the asset was worthless the following month.
The strategists said that the alternative asset class, which includes private debt and private equity, will return 11% next year. However, they did not recommend crypto as a core holding due to its volatility.
JPMorgan also advised investors to avoid Bitcoin and invest in the real estate sector.