How much will Bitcoin be worth in 2022, according to one of the world’s largest banks

J.P. Morgan Opinion on Bitcoin

According to analysts at JP Morgan, alternative assets, which include cryptocurrencies, “should continue to perform phenomenally in 2022.”

While Bitcoin is in its support zone around $61.000, JP Morgan, the prestigious investment bank predicted what will be the price leader cryptocurrency 2022. In yesterday published a Client report that analyzes the current cryptocurrency landscape and its projections for the coming year.

According to the analysts in charge of the report, alternative assets, which include cryptocurrencies, “should continue to perform phenomenally in 2022.” On this occasion, unlike what happened in previous reports, the specialists set a target price for bitcoin: $73,000.

Considering the current price, this projection would represent about a 17% increase, a return that does not seem far off taking into account the high volatility of the asset and considering past upward trends. However, JP Morgan also differentiated the market price, driven by supply and demand, from the “fair” value of this cryptocurrency. In this case, the price would have to be “only” $35,000, which means that Bitcoin is overvalued by more than 77% taking into account current prices.

JP Morgan BTC

In any case, on many occasions, the “fair” value of an asset does not tend to coincide with its market price, mainly because investors and operators discount future expectations. In addition, in the cryptocurrency ecosystem, irrationality tends to predominate over good sense, so JP Morgan’s comment should not alarm those who have Bitcoin in their portfolio.

“This challenges the idea that a price target of $100,000 or more, which appears to be the current consensus for 2022, is a sustainable target for cryptocurrency in the absence of a significant decrease in volatility,” they added. Furthermore, they comment that the current entry point “seems unappealing”, but crypto assets are on a “multi-year structural ascent.”

Analysts conclude that the alternative asset class, which includes private debt and private equity, will return 11% next year, double the 5% gain from equities and fixed income. However, they do not recommend cryptocurrencies as a “primary holding” due to their volatility.