Researchers at JP Morgan have determined that bitcoin is still 25% lower than its “intrinsic value”
Although JP Morgan Investment Bank does not trade bitcoins and does not offer cryptocurrency services to customers, from time to time it issues its own analysis of this relatively new market.
Recently, one person, probably a client of this bank, issued a report from JP Morgan on May 22, which includes an analysis of the situation around bitcoin in connection with halving.
Analyzing the intrinsic value of Bitcoin, the researchers found that Bitcoin is currently “trading 25% below the intrinsic value that should be after halving.” The "intrinsic value of bitcoin", according to JP Morgan, is taken from the average cost of mining one coin.
Although this fact is not a signal to anything, according to analysts, "in the end, bitcoin will catch up."
Thus, according to JP Morgan researchers, the intrinsic value of bitcoin is about $11,500, $2,500 higher than the current market price.
Although such a price may seem “distant”, it is achievable due to the positive fundamental trends in bitcoin at the moment.
On May 21, Santiment, a blockchain analytics firm, shared the opinion that the NVT indicator, which shows the ratio of value to transactions in the Bitcoin network, remains “healthy” and the price may soon resume growth despite a recent decline.
This optimism was also supported by the BlockTower Capital investment fund, which in its comments stated that “the macroeconomic situation has never been more suitable” for bitcoin.
BlockTower also associates its optimism with many trends. This, in their opinion, is a growing distrust of banks, the spread of innovative financial technologies and growing geopolitical tensions amid the negative impact of COVID on the global economy.
Previously, there were reports that JP Morgan began serving companies such as Coinbase and Gemini.
Galaxy Digital CEO Michael Novogratz said JP Morgan’s moves like that make sure the future lies in digital assets:
“The JPM announcement that they will provide banking services to Coinbase and Gemini is a big deal. Go $BTC. It is recognition that the future will include crypto currencies, digital assets, and blockchain based systems.”