JPMorgan said bitcoin and cryptocurrencies are now among its preferred “alternative” investments, according to other media outlets, sourcing a note from Nikolaos Panigirtzoglou, managing director of global market strategy, released May 25.
The bank believes bitcoin has “significant upside potential” after its recent fall. Bitcoin’s volatility in relation to gold has declined modestly, suggesting a “fair value” of $38,000 for the cryptocurrency and implying “significant upside for digital assets.”
“We thus replace real estate with digital assets as our preferred alternative asset class along with hedge funds,” the bank’s strategists wrote, per the report.