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U.S. banking titan JPMorgan claims that Bitcoin’s fair value is $35,000, which is 44% lower than its current price tag of $63,300, Bloomberg report.
Its estimation is based on comparing the cryptocurrency’s volatility to that of gold.
Presently, Bitcoin is four times more volatile than the lustrous metal.
JPMorgan says that the high prices are “unattractive” despite noting that there is likely more upside in store.
As reported by U.Today, billionaire Peter Thiel also opined that Bitcoin could be overpriced above $60,000, claiming that its enormous valuation could be a sign of out-of-control inflation.
With that being said, the banking giant believes that the top cryptocurrency could top $100,000 in 2022 unless its volatility sees a major drop:
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
Last month, JPMorgan CEO Jamie Dimon riled up the cryptocurrency community after calling Bitcoin “worthless.”
Real estate instead of crypto
JPMorgan expects crypto to continue marching higher in 2022, predicting a modest 15% increase.
Yet, the banking giant advises investors to eschew the volatile asset class in favor of the real estate sector.
JPMorgan expects both residential and commercial properties to go up in price due to improving expectations of economic growth.