• May 28, 2022

JP Morgan says cryptocurrencies outperform real estate

JP Morgan says cryptocurrencies outperform real estate

Investment bank JP Morgan says cryptocurrencies have replaced real estate as its “preferred alternative asset class.”

According to a report, JP Morgan strategists, led by Nikolaos Panigirtzoglou say that Bitcoin (BTC) has significant upside potential, after its recent drop. And they also forecast a drop in the real estate market due to rising mortgage interest rates.

As a result, strategists said that there could be more room for cryptocurrencies to rise compared to traditional assets.

«Therefore, we replaced real estate with cryptocurrencies as our preferred alternative asset class along with hedge funds».

By the way, alternative assets usually refer to all investment assets that are not stocks, bonds or cash.

As a fun fact, JP Morgan has made great strides to get more involved in the cryptocurrency industry since last year.

JP Morgan indicates that Bitcoin could rise to $38,000

On the other hand, although the market has been shaken by the recent sell-off, Nikolaos Panigirtzoglou and his team are confident that Bitcoin will recover soon.

Indeed, JP Morgan says that Bitcoin has a “significant advantage from here“and it could go up to $38,000. Real estate not so much.

By the way, an increase of almost 30% of the main crypto asset by the valuation of the market capitalization of $29,104.

«The correction of the cryptocurrency market last month looks more like a capitulation relative to last January/February. And in the future, we see an advantage for Bitcoin and the cryptocurrency markets in general».

Likewise, strategists say that the most recent pullback of the crypto market, has had little or no impact on the rate at which venture capital firms are investing their funds in virtual assets.

Now, Nikolaos Panigirtzoglou, has previously said that Bitcoin has potential in an inflationary environment. Since some investors might consider it as a better hedge against inflation than gold.

To conclude, JP Morgan strategists seemed optimistic about the future of the cryptocurrency industry. As long as the venture capital funds kept flowing.

«The venture capital (VC) funding trajectory would be crucial to help the cryptocurrency market avoid the long winter of 2018/2019».

I close with this quote from Michael Saylor: “Bitcoin will be worth millions. Represents the future of money».