JP Morgan’s Jamie Dimon says Bitcoin has a ‘big upside’ now
JP Morgan Chase said in a research note this week that Bitcoin’s recent slide has left the digital token well below its fair price, now giving the cryptocurrency a “huge rally.”
The bank said bitcoin was undervalued by 28%, and set its target price for the coin, which traded at $29,600 on Thursday afternoon, at $38,000 according to Markets Insider. Bitcoin fell below $26,000 earlier this month for the first time since December 2020, just as stock markets took a similar hit – in large part due to inflation fears.
“Last month’s crypto market correction looks more like a capitulation compared to last January/February, and from now on we see a rally in the bitcoin and crypto markets in general,” wrote strategist Nikolaos Panigerzoglu on Wednesday.
Positive outlook for JPMorgan Notable because CEO Jamie Dimon has long been skeptical of cryptocurrency. Damon said he was “thinking personally[s] that bitcoin is worthless,” though he acknowledged that many of his customers feel differently.
He said last year, “I’m not a bitcoin fan. I don’t care about bitcoin. I don’t have an interest in it.” “On the other hand, customers are interested, and I don’t tell customers what to do.”
Last summer, JPMorgan began giving wealth management clients access to six crypto funds, to add bitcoin exposure to their portfolios. This is despite Dimon’s previous comments that bitcoin “has no intrinsic value” and that “regulators will get out of it.”
On Wednesday, Securities and Exchange Commission Hester Pierce told CNBC that the United States had “dropped the regulatory ball” in relation to cryptocurrency. She called on Congress to clarify the regulatory role of the Securities and Exchange Commission, so that its agency can take more proactive steps against cryptocurrency fraud in the future.
“We don’t allow innovation to develop and experiment in a healthy way, and there are far-reaching consequences to that failure,” Pearce said.
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