New money in perspective? – Even if the mega-bank JP Morgan still does sometimes dirty tricks to actors in the cryptosphereshe has clearly entered the game of Bitcoin (BTC) and its ilk. Its analysts are all optimists on the long-term future of crypto-assets, or even outright bullish (bullish).
A New Investment Tsunami for Bitcoin and Cryptos
Although the information given here comes from two analysts different from the bank JP Morganthey agree on one point: Bitcoin is promised to a bright future. The most optimistic of them is Michael Cembalestthe president of investment strategy for JP Morgan.
In his latest newsletter, the analyst initially admits to being among those who have not “not anticipated” the amazing increase in valuation of the crypto market. From a total “from 25 billion to 2,500 billion dollars” at its peak in November 2021 (and still around 2 trillion today, despite recent corrections).
And Michael Cembalest seems convinced that these investment waves are still far from over. Between the funds of capital risk (VC) and the various institutional investorssilver windfalls will continue to fuel the crypto sector.
“One thing is certain: a ton of money is flowing into crypto and blockchain investments (…) If you think raising capital [dans un secteur] is a go-to way to assess one’s future, you can stop reading here and conclude that crypto-related investments are bound to succeed. As the chart below shows, venture capitalists have been pouring money into cryptocurrencies at an accelerating rate (…)”
Michael Cembalest, President of Investment Strategy for JP Morgan
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Bitcoin overvalued in the short term, but at $150,000 in the long term?
The second JP Morgan analyst to be optimistic for the future course of Bitcoin is Nikolaos Panigirtzoglouthe managing director of global market strategy for JP Morgan.
The analyst, quoted by Bloomberg, first wants to be a little more measured than his previous colleague. He indeed estimates that the price of Bitcoin would be for now overvalued. The current ” just value “ of BTC would be around $38,000according to the banking specialist.
Nikolaos Panigirtzoglou bases this on the volatility of Bitcoin compared to that ofgold. Price movements are currently estimated by the expert to be “4 times more volatile” for cryptocurrency than for the precious metal.
If, with a theoretical objective to long termBitcoin ended up having similar volatility to the gold metal, the expert’s price estimates become much more optimistic: at $150,000 the BTC!
“Bitcoin’s biggest challenge going forward is its volatility, and its boom and bust cycles, which are still impeding greater adoption by marketers for now. [investisseurs] institutional. »
Nikolaos Panigirtzoglou, Managing Director of Global Market Strategy for JP Morgan
With such enthusiasm for Bitcoin and cryptos from its analysts and investment strategists, we understand better why the multinational banking is so interested to the sector. To the point, moreover, that the bank JP Morgan has become an expert in blockchain payment systemssolicited in particular in December 2021 by the giant Siemens.
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