J.P. Morgan thinks that Bitcoin’s fair price is $35k. The bank has recently put out this statement even after knowing that the current price of BTC is nearly $63k. The price that J.P. Morgan has quoted is a lot less than what BTC is trading at right now. But they also said that even though this is the fair price, they expect to outperform it and have also given a price target of more than $73k in the short term.
Bitcoin’s fair price is $35k, or is it?
While most crypto enthusiasts think that the price of Bitcoin is massive undervalued and it should be well over 100k, J.P. Morgan disagrees. They have their own price model, which says that the current price is more than fair. Their estimate of the right price of BTC is $35k. The bank has also said that they do not expect BTC to reach the sky-high targets that many predict. The fact that we are still waiting for BTC to cross $100k and eventually break higher clashes with this idea.
The analysts of the bank also pointed out that the current entry point for BTC looks unattractive. And I partially think they are correct as even I think twice before adding some more to my portfolio. They also pointed out that other asset classes like private debt and public equity are expected to return 11% next year. And due to the volatility of crypto, it is not recommended as a core holding for anyone.
Now, this makes sense for some people who are not so young and want to have a stable portfolio. But for the millennials and the Gen Z audience that still has much time before retirement, we can take the risk with crypto and its volatility.
J.P. Morgan’s contradicting statements
The bank has always been one of those that has made statements contradicting their own beliefs. While the bank’s CEO thinks that BTC is useless and he won’t invest in it, the retail unit of their bank offers crypto services. At the same time, their price targets for Bitcoin change according to the mood of the market. A few weeks back, they reported that BTC is being preferred over Gold by institutional investors, and now they are again bashing it.
What are your thoughts on JP Morgan’s analysts saying that Bitcoin’s fair price is $35k? And what do you think is the fair price of BTC and why? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.