Bitcoin investors have been swept up available in the market carnage this 12 months, but those still holding on should expect at the least 30% upside to the cryptocurrency, based on JPMorgan strategist Nikolaos Panigirtzoglou. He reiterated in a note this week that bitcoin’s fair value is on the $38,000 level, which means upside of about 32% for the cryptocurrency from where it’s trading. On Friday at 12:30 p.m. ET, it traded at around $28,687. The strategist said the identical thing in February , when bitcoin and risk assets more broadly were still on their way down. “The bitcoin to gold vol ratio has declined modestly towards 4x, which in our framework would suggested an unchanged fair value of around $38,000 implying significant upside for digital assets from here,” Panigirtzoglou said in a note this week. A preferred alternative asset class He also said digital assets have replaced real estate because the firm’s “preferred alternative asset class together with hedge funds.” Public markets have already priced in recession risks, while digital assets went through repricing after the collapse of the stablecoin TerraUSD earlier this month, Panigirtzoglou said. “A possible lagged repricing keeps us more cautious on private equity, private debt and real estate over the approaching quarters,” he said. Bitcoin hit its longest-ever weekly losing streak — eight weeks — this month and market sentiment has been dismal amid a broader sell-off in risk assets this 12 months and the stunning blowup of one in all crypto’s hottest projects , TerraUSD. Most crypto investors and observers arrived to the market during or after the 2018-2019 “crypto winter.” Bitcoin has greater than halved since hitting its all-time high of $68,982.20 in November. It was trading in a good range this 12 months before falling below $30,000 this month after the Terra collapse. Enterprise capital funding of crypto projects is crucial to the digital asset market, Panigirtzoglou said, and will help it avoid an prolonged “crypto winter” just like the one in 2018. Seasoned crypto investors often say that these bearish periods are optimal for constructing recent projects to have ready for the following bull run. “So far, there’s little evidence of VC funding drying up post Terra’s collapse,” Panigirtzoglou said. “Of the $25 billion VC funding YTD, almost $4 billion got here after Terra. Our greatest guess is the VC funding will proceed and a protracted winter much like 2018/2019 can be averted.”
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