JPMorgan: Bitcoin is slightly overrated as a commodity
According to JPMorgan Chase experts, Bitcoin will face a „modest headwind“ in the near future.
JPMorgan Chase’s experts analyzed the current price of Bitcoin, comparing it to other goods: in their opinion, we may see moderate sales pressure in the near future.
According to a recently published article in BloombergQuint, a partner entity involving both Bloomberg and Quintillion Media, it says:
„JPMorgan analysts claim to have calculated the intrinsic value of Bitcoin by examining the cryptocurrency as if it were a commodity and taking into account the marginal cost of production.
According to JPMorgan Chase, Bitcoin will face a ‚modest headwind‘ in the short term, based on future market data and an estimate of the intrinsic value of the cryptocurrency“.
Usually the price of futures fluctuates slightly above or below market value, also called spot price. The price of futures tends to approach the spot price close to the expiry date of the contracts. Future prices above the spot usually indicate a bullish trend, and vice versa.
JPMorgan analysts have reported that at this moment Bitcoin’s bullish positions exceed the bearish ones. They have also shown an increase in buying pressure following the recent entry into Bitcoin by several financial companies: this year Paul Tudor Jones, MicroStrategy and Square have officially invested in BTC.
Bitcoin’s popularity as a commodity is also growing among the general public, so much so that nowadays cryptocurrency is often referred to as „digital gold“. According to Max Keiser, founder of Heisenberg Capital, the interest of traditional investors in BTC will raise the price to $50,000:
„Currently, the $100 trillion fund management business has invested less than 1% in gold. But now Buffett is approaching gold, I anticipate a minimum global allocation of 5%. This will bring the price of gold to $5,000.
I also foresee a minimum global allocation of 1% (1,000 billion dollars) in Bitcoin. This will bring the price of Bitcoin to $50,000″.