A bank investors’ note placed Bitcoin’s fair value at the same level in February. It was trading around $43,000 at that time.
Crypto has surpassed real estate as a preferred “alternative asset” for the bank, along with hedge funds, the note continues. It said:
“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.”
VC funding would be critical to avoiding that crypto winter, it added.
On the same day, major venture capitalist Andreessen Horowitz announced the closing of its fourth cryptocurrency fund at $4.5 billion. Also on Wednesday, crypto-focused venture firm NGC Ventures launched its third blockchain fund with $100 million raised from investors that included Babel Finance, Huobi Ventures and Nexo Ventures.
JPMorgan CEO Jamie Dimon has repeatedly expressed his personal antipathy toward cryptocurrency, going so far as to call it a fraud, but the bank, itself, has taken a more practical stance. It became the first major bank in the Metaverse earlier this year. Dimon has praised crypto for it cross-border payment facility.