JPMorgan Says Crypto Has Replaced Real Estate As ‘Preferred Alternative Asset Class’: Report
According to a new Fortune report, JPMorgan strategists led by Nikolaos Panigirtzoglou believe that the leading digital currency Bitcoin (BTC) has the capacity to expand, but that the real estate sector would suffer owing to rising mortgage interest rates.
Bitcoin's goal price, according to the strategists, is roughly $38,000, up nearly 30% from the top crypto asset's market capitalization of $29,359 at the time of writing.
“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.”
Despite the fact that the bank's strategists recently downgraded alternative asset classes from "overweight" to "underweight" due to prolonged macroeconomic concerns, they now rank crypto assets ahead of real estate as their favored alternative asset class.
According to the strategists, the recent crypto market correction, which saw the digital assets industry lose over $1 trillion in market capitalization, has had little to no impact on how venture capital firms pour money into virtual assets.
Andreessen Horowitz, a venture capital firm, has announced the opening of two new crypto funds, one with a colossal $6.5 billion dedicated to digital assets in general and the other with $600 million dedicated to metaverse games.
In April, noted crypto skeptic and JPMorgan CEO Jamie Dimon claimed that blockchain and decentralized finance (DeFi) technologies have simple use applications.
“Decentralized finance and blockchain are real, new technologies that can be deployed in both public and private fashion, permissioned or not. JPMorgan Chase is at the forefront of this innovation.”