Alternative Investments/Digital/VC/RealEstate: VC To Be Bitcoin’s Saviour, Prefer Crypto To Real Estate (JP Morgan)

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The Wall Street giant also placed bitcoin’s fair valuation at $38K.

JPMorgan said in a research report Wednesday that despite the fallout from the Terra/Luna collapse, the crypto market would be saved from a “winter” by venture capital, and that bitcoin could rebound to its fair value of $38,000 after a “capitulation” in recent weeks. That implies an upside of about 28% from bitcoin’s current price of $29,618. (News.com.au)

In another significant view, JP Morgan said it preferred crypto over real estate as its alternative investment of choice given the hardening trend in interest rates.

The investment bank’s long-term price target for bitcoin is now $150K, up from $146K set in 2021.

JPMorgan: Comments on alternative investments

The JPMorgan analysts, led by Nikolaos Panigirtzoglou, commented as follows in their note:

“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.”

“While public markets already price in significant recession risks, and digital assets have repriced significantly following the collapse of terra USD [UST], some alternative assets such as private equity, private debt and real estate appear to have lagged somewhat.”

“We thus replace real estate with digital assets as our preferred alternative asset class along with hedge funds.”

The JPMorgan analysts also commented that “the trajectory for VC funding would be crucial in helping the crypto market to avoid the long winter of 2018/2019”, which followed the ICO boom.

What winter? Andreessen Horowitz launches $4.5B new crypto fund

In related industry news, VC firm Andreessen Horowitz announced that it had raised $4.5 billion for its fourth crypto fund to invest in promising web3 startups at every stage.

Of the amount raised, approximately $1.5B will be deployed to seed investments, and $3B to venture investments.

Related Story: Digital Assets: The Terra (LUNA) Implosion – Sidelights

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