Crypto, the most perfectly designed way to separate a person from real wealth, is still high on JPMorgan's list of things to gamble on. They feel bitcoin is massively undervalued and the entire crypto shellacking that has gone on in 2022 is "capitulation."
In fact, they are swapping out investments in real estate for digital assets. In the words of Han Solo, "I have a bad feeling about this."
Despite the crypto slump, banking giant JPMorgan says bitcoin is massively undervalued. Maintaining its estimate of bitcoin's fair value at $38,000, the bank today reiterated the assessment it gave the asset in February when the cryptocurrency was trading around $43,400. This price is approximately 28% higher than its current level of $29,757.
In a note to clients issued Wednesday, the bank has also stated that it is replacing real estate with digital, or crypto, assets as its preferred alternative asset class along with hedge funds, citing "potential lagged repricing" in private equity, private debt and real estate. Alternative assets typically refer to investments that aren't stocks, bonds or cash.
"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 bank's strategists, led by Nikolaos Panigirtzoglou, noted in the report.
When I read Mr. Panigirtzoglou's words I hear sound of someone waving their hands.