Financial services giant JPMorgan says crypto assets have now surpassed real estate in terms of growth potential.
According to a new report by Fortune, JPMorgan strategists guided by Nikolaos Panigirtzoglou say leading digital asset Bitcoin (BTC) has room to grow while also forecasting a slump in the real estate market due to rising mortgage interest rates.
The strategists’ target price for Bitcoin is around the $38,000 mark, a near 30% increase from the top crypto asset by market cap’s valuation of $29,359 at time of writing.
“The past month’s crypto market correction looks more like capitulation relative to last January/February, and going forward, we see upside for Bitcoin and crypto markets more generally.”
Though the banking giant’s strategists recently downgraded alternative asset classes from “overweight” to “underweight” due to persistent macroeconomic challenges, they now classify crypto assets as their preferred alternative asset class over real estate.
The strategists further say that the most recent crypto market pullback, which saw the digital assets industry shed over $1 trillion in market cap, has had little to no impact on the rate at which venture capital firms are pouring their funds into virtual assets.
Recently, venture capital firm Andreessen Horowitz announced the launch of two new crypto funds – one with a massive $6.5 billion for digital assets in general and another with $600 million for metaverse games.
In April, prominent crypto skeptic and JPMorgan CEO Jamie Dimon, who once referred to BTC as “useless,” said that blockchain and decentralized finance (DeFi) technologies have valid use cases.
“Decentralized finance and blockchain are real, new technologies that can be deployed in both public and private fashion, permissioned or not. JPMorgan Chase is at the forefront of this innovation.”
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