US banking giant JPMorgan does not appear to be impressed with Bitcoin’s bullish run as it believes that the fair value of the flagship cryptocurrency should be $35,000.
According to a Bloomberg report, JPMorgan claimed that Bitcoin should be trading around 44% lower than its current price tag of over $60,000.
The opinion was drawn by comparing the cryptocurrency’s volatility to that of gold. It has been observed that Bitcoin is four times more volatile than the lustrous yellow metal. JPMorgan asserted that the high prices of the digital asset appear “unattractive” despite noting that more positives are likely to come.
German-American billionaire entrepreneur Peter Thiel, speaking on the subject, opined that Bitcoin could be overpriced above $60,000, suggesting that its enormous valuation could be a pointer to the ongoing out-of-control inflation.
Having said that, the banking giant believes that the top cryptocurrency could surpass $100,000 by 2022 unless it experiences a major slump:
This challenges the idea that a price target of $100k or above, which appears to be the current consensus for 2022, is a sustainable bitcoin target in the absence of a significant decline in bitcoin volatility.
Just last month, the CEO of JPMorgan, Jamie Dimon, unsettled some nerves within the crypto sphere after referring to Bitcoin as “worthless.” The firm predicted a modest 15% increase for crypto in 2022 as it expects the space to continue progressing next year.
However, the banking giant has advised investors to abstain from the volatile asset class in favor of the real estate sector, as it expects both residential and commercial properties to improve in value due to increasing expectations of economic growth.