Terra’s demise, according to the banking giant, does not appear to have harmed the VC market, and things are looking positive for crypto as long as VC remains in.
According to a letter provided to customers on Wednesday, JPMorgan has set the fair price of Bitcoin (BTC) at $38,000, which is 28% higher than its current level of roughly $29,500. “In comparison to last January/February, the recent crypto market correction appears more like capitulation, and we see upside for Bitcoin and crypto markets in general going forward,” the letter read. The document’s principal author was bank strategist Nikolaos Panigirtzoglou.
In February, a bank investors’ report put Bitcoin’s fair value at the same level. At the time, it was worth roughly $43,000.
The bank’s favourite “alternative asset,” along with hedge funds, has exceeded real estate, according to the note. It read:
“Thus far, there is little evidence of VC [venture capital] funding drying up post-Terra’s collapse. Of the $25 billion VC funding year-to-date, almost $4 billion came after Terra. Our best guess is the VC funding will continue and a long winter similar to 2018/2019 would be averted.”
It went on to say that VC money will be crucial in avoiding a crypto winter.
On the same day, Andreessen Horowitz, a leading venture capital firm, announced the $4.5 billion closure of its fourth cryptocurrency fund. NGC Ventures, a crypto-focused venture firm, also established its third blockchain fund on Wednesday, raising $100 million from investors such as Babel Finance, Huobi Ventures, and Nexo Ventures.
JPMorgan CEO Jamie Dimon has stated his personal distaste for Bitcoin, even going so far as to label it a scam, but the bank has taken a more pragmatic approach. Earlier this year, it became the Metaverse’s first big bank. Cryptocurrency’s cross-border payment capability has been commended by Dimon.
Source: Cointelegraph