JP Morgan Chase: Bitcoin as a commodity is slightly overvalued

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Several experts from JPMorgan Chase analyzed the current prices of Bitcoin and other commodities and pointed out that Bitcoin may face selling pressure in the future.

BloombergQuint (Bloomberg’s financial news company in India) said in an article on October 14: “JPMorgan Chase’s strategists stated that they calculated by effectively treating Bitcoin as a commodity and considering the marginal cost of The intrinsic value of Bitcoin.” The article added:

“JP Morgan Chase stated that, based on the analysis of bets on the futures market and the estimation of the intrinsic value of Bitcoin, Bitcoin will face a moderate downside risk in the short term.”

The trading price of Bitcoin futures prices is usually slightly higher or lower than the current market exchange rate of Bitcoin, which is the spot price of Bitcoin. As the contract approaches its expiration date, the futures price tends to approach the spot price. Futures prices higher than spot prices may indicate bullishness, while prices lower than spot prices indicate bearishness.

Experts from JPMorgan Chase report that, according to futures-based indicators, Bitcoin’s bullish position exceeds its bearish position. The strategist also mentioned that due to the recent entry of mainstream financial giants into the Bitcoin market, buying pressure has increased; Paul Tudor Jones, MicroStrategy and Square have all purchased a large amount of Bitcoin in 2020.

In recent years, Bitcoin has gained mainstream attention as a commodity, and participants often compare it to digital gold. Traditional analysts have begun to view Bitcoin as a commodity, which may indicate that the mainstream Bitcoin trend will continue.