JPMorgan has said that Bitcoin ($BTC) and cryptocurrencies, in general, are now the bank’s preferred alternative asset, as a major sell-off in the cryptocurrency space after the collapse of the Terra ecosystem hurt cryptos more than other alternative investments including private equity and private debt.

The sell-off in cryptocurrency markets seen earlier this year suggests there’s more room for cryptos to rebound, JPMorgan strategists wrote in a note and added:

We thus replace real estate with digital assets as our preferred alternative asset class along with hedge funds.

Alternative assets, it’s worth noting, are assets that don’t fall into typical categories such as stocks and bonds. Cryptocurrencies, real estate, private equity, and private debt all fall under this category.

In a note sent to clients, as Business Insider reports, JPMorgan analysts have written that Bitcoin’s fair price is some 28% above its current value, implying the flagship cryptocurrency could be seeing “significant upside from here.”

JPMorgan’s analysts including Nikolaos Panigirtzoglou wrote:

The past month’s crypto market correction looks more like capitulation relative to last January/February and going forward we see upside for bitcoin and crypto markets more generally,

To JPMorgan’s analysts, the fair price for BTC is $38,000, as opposed to the $29,700 level the cryptocurrency is currently trading at. Investors have moved away from riskier assets including cryptoassets this year over rising inflation and interest rates and Russia’s invasion of Ukraine.

While the collapse of the Terra ecosystem affected the broader cryptocurrency market and led some investors off of the space, JPMorgan’s strategists wrote that there is so far little sign that venture capital funding into crypto is drying up.

Despite now preferring bitcoin and other cryptoassets over other alternative investments, the bank is less keen on these assets, switching their ranking from “overweight” to “underweight.”

As CryptoGlobe reported, Nikolaos Panigirtzoglou put a $146,000 long-term price target on BTC earlier this year. The price target assumes “a convergence of Bitcoin volatility to that of gold and an equalization of bitcoin allocations to that of gold in investor portfolios.”

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The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.