Analysts at JPMorgan Chase & Co have reportedly forecast potential upside for Bitcoin BTC/USD and different cryptocurrencies within the months to return.
What Occurred: In a Wednesday analysis word to buyers seen by Forbes, JPMorgan strategists, led by Nikolaos Panigirtzoglou, positioned Bitcoin’s “honest worth” at $38,000, 28% larger than its present market worth.
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“The previous month’s crypto market correction appears to be like extra like capitulation relative to final January/February, and going ahead, we see upside for Bitcoin and crypto markets extra usually,” the word mentioned, as per the report.
The financial institution additionally famous that cryptocurrencies had surpassed actual property as a most popular various asset.
The worldwide cryptocurrency market cap fell from over $2 trillion in April to round $1.2 trillion at press time. Bitcoin, Ethereum ETH/USD, and different cryptocurrencies got here beneath intense selloff strain after the collapse of the Terra LUNA/USD ecosystem earlier this month.
JPMorgan analysts, nonetheless, don’t imagine the incident triggered irrevocable injury to the cryptocurrency area, in accordance with Forbes.
“To date, there may be little proof of VC funding drying up post-Terra’s collapse. Of the $25 billion VC funding [year to date], nearly $4 billion got here after Terra,” the analysts have been quoted as saying.
“Our greatest guess is the VC funding will proceed and a protracted winter just like 2018/2019 could be averted. But if this funding dries up, a protracted winter may very well be on the playing cards.”
One VC agency that seems unfazed by Bitcoin’s eight-week-long purple streak is Andreessen Horowitz (a16z). The agency announced that it had closed $4.5 billion for its fourth cryptocurrency fund.
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Worth Motion: In accordance with information from Benzinga Pro, BTC was buying and selling at $29,680, down 0.25% within the final 24 hours.