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According to JPMorgan’s Alternative Investment Report, Digital Assets Have Replaced Real Estate as the Preferred Alternative Asset Class
“While public markets have already priced significant recession risks and digital assets have received significant revaluation after the collapse of Terra USD (UST), some alternative assets such as investments in private debt and real estate are somewhat lagging behind. Thus, we advise you to replace real estate as the preferred alternative asset class with cryptocurrencies,” said JPMorgan strategist Nikolaos Panigirtsoglou.
As for alternative assets in general, the team downgraded their rating from excess to insufficient, expecting that over the next year traditional assets will bring 12% profit compared to only 10% for alternative assets.
The strategists noted that the collapse of Terra has collapsed sentiment in the crypto sector, thereby offering a good entry point for long-term investors. According to them, to avoid a long crypto winter like 2018-2019, venture capital will help, the inflow of which does not show signs of drying up.
In addition, other stablecoins were not particularly affected, and the total blocked cost in DeFi projects (with the exception of Terra) remained relatively stable.
According to Panigirtsoglu, the recent downward movement of BTC and the entire crypto market is similar to capitulation. Based on the btc/gold volatility ratio, the strategist called the bitcoin rate at $38,000 fair, which is almost 30% higher than the current one.
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