JPMorgan Chase said in this week’s research note that crypto slides under fair value provide an opportunity for “significant upside” for investors.
On Friday, bitcoin held the crucial $30,000 level and was hovering near $28,800. Furthermore, according to market data, King Coin is down about 5% in the past week.
$38,000. BTC Fair Value
According to banking giant JPM, $38,000 is a fair value for BTC. Therefore, it shows that the largest coin by market cap has the potential to rise by at least 36% from current price levels, according to the banknote.
Meanwhile, CoinGecko also highlighted that the cumulative crypto capitalization globally fell to $1.2 trillion at press time. This was behind 137,446 traders reportedly liquidating their holdings, bringing the total liquidations to $517.24 million on Friday.
“Last month’s crypto market correction resembles a capitulation relative to last January/February, and further we see upside for the bitcoin and crypto markets in general,” the note said.
The bank’s analysts also noted that crypto is now the preferred “alternative asset” when they said, “We are thus replacing real estate with digital assets as our preferred alternative asset class as well as hedge funds, “
That said, some crypto industry players believe that the bear market is here to test the most deserving projects. Bertrand Perez, CEO of the Web3 Foundation, told CNBC at the World Economic Forum in Davos, Switzerland, “We’re in a bear market. And I think that’s good. It’s good, because it’s going to clean up the people who are in the world.” Were there for bad reasons.”
“It’s also good, because all those projects are gone. So the legitimate people will be able to just focus on the build and forget about the valuation of the token because everyone else is down,” Perez said on the ‘valuation’. ‘ said emphasizing.
BTC dominated amid weak market
The Bitcoin Market Dominance (BTC.D) Index is rising even though Bitcoin is down almost 60% against its all-time high of $69,000 last year.
According to the TradingView chart, BTC dominance is still above 46%.
Notably, the index is up more than 5% since May 10, as the altcoin universe has also been negatively affected since the Terra market collapse. Meanwhile, Ethereum, the second largest cryptocurrency by market cap, is experiencing a slight delay ahead of the much-anticipated merger, prompting investors to turn to bitcoin.
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