Bitcoin (BTC) Latest Rally “Carries Echoes” Of Late-2017, Says JP Morgan
There has been a massive surge in the price of Bitcoin that took place a few days ago, BTC hit the $8,000 level, and more experts believe that it would continue to surge to $10k, but then the coin crashed.
Since the beginning of April this year, the most important coin in the crypto market was able to surge from $4,200 to a new peak for this year of $8,350.
This was a gain of 100%, and it seems that the coin is now gearing up for another surge.
Is BTC trading above its intrinsic value?
A lot of crypto experts believe that this surge comes during strong fundamental developments but there’s now a Wall Street company that doesn’t believe that this is the case.
NewsBTC reports that in a recent research note from JP Morgan, obtained by Holger Zschaepitz, a German economist and author, it was explained that BTC is currently trading above its “intrinsic value.”
This note is suggesting that BTC’s intrinsic value is the estimated cost of production per unit or mining costs.
Zschaepitz said that JP Morgan notes that this current rally “carries echoes of late-2017”.
Back then, BTC spectacularly rallied and decoupled from any fundamentals on the back of hype.
— Holger Zschaepitz (@Schuldensuehner) May 17, 2019
Tom Lee also claimed that BTC historically trades at around two times its intrinsic value, and this happens, especially during the bull runs.
JP Morgan has been usually bearish on BTC, and it’s also important to recall that JP Morgan’s chief executive Jamie Dimon has called BTC a fraud and more insults more than once.
Stronger fundamentals in 2019 compared to 2017
The online publication mentioned above says that this assumption that BTC is trading too far above its intrinsic value is not necessarily correct.
They bring up Dan Held, the co-founder of Interchange, who has recently pointed out the fact that the ecosystem’s fundamentals and infrastructure are now extremely powerful compared to 2017.
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