JPMorgan Analysts Put Ethereum Fair Value At $1,500, With Bullish Outlook For Bitcoin
November 05 2021 - 7:00PM
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Ethereum’s value has hit a recent all-time high above $4,600.
However, not everyone agrees that the altcoin is fairly priced.
Analysts at JPMorgan fall into this category. Although the altcoin
has made great strides in utility recently, the analysts do not
believe that the coin is fairly valued. They believed that the fair
price of the digital asset is in fact much lower than its current
value. Ethereum has been one of the most successful digital assets
in the market. This has been due to the growth of use cases such as
decentralized finance and NFTs. Ethereum remains the default
blockchain for investors to access these services and this has made
its native token, ETH, rally over the months. Despite its use
cases, JPMorgan analysts have posited that the coin is overvalued.
Ethereum Should Be $1,500 JPMorgan released the first issue of a
publication that focused on cryptocurrencies. The publication would
show the firm’s stance on crypto and other digital assets. It opens
a window into the firm and how they are viewing investments in the
market. Nikolaos Panigirzoglou is at the lead of the new
publication and brings his knowledge and expertise in the digital
assets space to it. Related Reading | Bitcoin ETF Inflows Slow
Down As Altcoins Interest Rebound Starting out, Panigirzoglou
focused his attention on Ethereum. The second-biggest
cryptocurrency by market cap got some not-so-encouraging words from
the analyst. According to Panigirzoglou, ETH was wildly overvalued
despite its utility in the market. This comes as a surprise to the
market as ETH has proven to have more applications than its
counterpart bitcoin. ETH trading below ATH | Source: ETHUSD on
TradingView.com Panigirzoglou said that ETH’s value was actually
much lower than it’s worth now. He put it at 67% less valuable than
the current price of the asset, which puts ETH at levels not seen
since the beginning of the year. The analysts put forward that they
expect the digital asset to begin a downtrend that will put it at
67% less than its current value, which is $1,500. Panigirzoglou
explained that growing competition in the space in which Ethereum
operates is the reason for this. “In turn, this creates the risk
that the substantial increase in the ethereum network activity over
the coming years embedded in the current price of $4,100 might not
materialize,” Panigirzoglou said. Bullish On Bitcoin In the
inaugural issue of the publication, JPMorgan analysts did not have
the same bearish sentiment for bitcoin as they did for Ethereum. If
anything, their overall outlook for the asset was very bullish. The
analysts revealed their future price targets for bitcoin, with both
long and short-term targets. Both of these were optimistic for the
pioneer cryptocurrency. Related Reading | FOMO Beware: Spot
Bitcoin Buying Volume Remains Low, Despite New ATH For the short
term, JPMorgan analysts put the price of bitcoin at $73,000 in
2022. With only two months left in the year, 2022 is not as far off
into the future as one would think. In addition, the long-term
outlook for bitcoin was also very bullish. They posited that they
saw the price of the digital asset hitting as high as $146,000 in
the future. The analysts attributed their bullish outlook to the
volatility of the asset. Also, Panigirzoglou did not see any
competition for bitcoin as opposed to Ethereum, which sees a lot of
competition from other smart contracts blockchains like Solana and
Cardano. Featured image from CryptoMode, chart from TradingView.com
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