In a social media post, investment bank JP Morgan revealed what it thinks of the king of cryptocurrencies. The institution believes that bitcoin (BTC) is still too undervalued and that it is not considered by investors at its fair value.
A market in crisis
In February, when bitcoin (BTC) had a worth $43,400, JP Morgan had said that cryptocurrency is important and absolutely must be among everyone’s investment options. Its design has not changed at all, even though BTC has lost a lot of value in the meantime. Even as BTC has lost 28% of its value, the bank believes it is always useful.
Separately, the bank has revealed that it trusts the king of cryptocurrencies so much that it is ready to replace its real estate investment class with digital assets. Cryptocurrencies will be considered as “ alternative assets and can replace stocks, bonds and cash.
Currently, BTC is trading at half of its all-time high of $68,721. Along with this situation, due to the ongoing war in Ukraine, the cryptocurrency market is facing intense difficulties. Proof of this is the $50 billion collapse of the stablecoin Terra (Luna). Finally, it should be pointed out that the total market capitalization of cryptocurrencies has dropped considerably. She is $1.3 trillion today.
Startups have a role to play
The situation in the cryptocurrency market is not pleasant, and yet strategists at JP Morgan bank believe that in the future, “we will have an upside for bitcoin and cryptocurrency markets more generally.” They also think that the intervention of startups and other companies in the sector will be decisive in fostering the expansion of the market.
Speaking of startups, it should be noted that Ethereum scaling startup Starkware has raised $100 million at an $8 billion valuation and venture giant Andreessen Horowitz announced a $1.5 billion allocation for cryptocurrency investments.
“So far, there is little evidence of a drying up of venture capital funding after the collapse of Terra. Of the $25 billion in VC funding year-to-date, nearly $4 billion has come after Terra,” noted the strategists.
Even though the cryptocurrency market is currently not in a pleasant period, professionals believe that everything seems to indicate that there will be a nice improvement in the future. All of these will allow digital assets like bitcoin (BTC) to take hold.
Source : Forbes
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Luc Jose Adjinacou
Far from having dampened my enthusiasm, an unsuccessful investment in a cryptocurrency in 2017 only increased my enthusiasm. I therefore resolved to study and understand the blockchain and its many uses and to relay with my pen information relating to this ecosystem.