According to JPMorgan, the price of bitcoin is trading below market value. The bank published a value assessment recently where it cited that the crypto asset should be worth around US$38,000.
Although the bitcoin price is currently depreciating, JPMorgan’s assessment believes that the current price of the currency does not reflect the actual value it holds.
Thus, in the report, the bank points out that the crypto asset price varies almost 30% between the actual value and the price charged by the market. The analysis was published on May 25, 2022, when bitcoin was trading at about US$29,800.
Now, bitcoin is worth even less, and on Friday morning (27) the crypto asset was quoted at US$28.7 thousand, according to data from CoinMarketCap. Before this assessment, JPMorgan published another analysis about the crypto market, in February 2022.
At that time, the price of bitcoin was US$43,000 on the market. Since then, the digital currency has plummeted by almost US$15,000. However, this devaluation has not removed JPMorgan’s interest in crypto assets.
Bitcoin price is below market value
The JPMorgan bank continues to invest in crypto assets even with bitcoin’s undervaluation. In addition to talking about its actual price, the bank stated that it is investing in digital assets.
JPMorgan has stated that it diversifies its investments, replacing real estate with crypto assets and tokens. The institution continues to invest in hedge funds, after reassessing its position in real estate, private debt, and private equity markets.
In the report, the bank’s strategist Nikolaos Panigirtzoglou said that the crypto market might show upside in the future right after the recent correction.
Along with the other JPMorgan strategists, Nikolaos Panigirtzoglou also says that the current crypto market correction is a consequence of the performance of crypto assets between January and February 2022.
“Last month’s crypto assets market correction looks more like a capitulation referring to January/February, and going forward, we see upside for bitcoin and crypto markets in general.”