JPMorgan Strategist Points To Bitcoin Price Reduction Factor
The internal value of Bitcoin is growing but remains below the market price, which indicates the possibility of a fall in the latter. Strategist at JPMorgan Chase, Nikolaos Panigirtszoglu, expressed this opinion, says Bloomberg.
Specialists of a financial holding calculate the intrinsic value of the first cryptocurrency, considering it as a commodity and taking into account production costs, including computing power and electricity.
The strategist of the American bank also noted the activity of institutional players in the CME Group bitcoin futures market, which was associated with the upcoming launch of the bitcoin options exchange. Open interest grew by 69% compared to the end of the year, he stressed.
CME Group will launch Bitcoin options on Monday, January 13th.
The analyst recalled that the launch of a similar product by the Bakkt platform last month aroused “fairly little” interest. He believes that, given the dominance of the CME Group in the trading of regulated futures, a similar situation may arise in the bitcoin options market.
Earlier, CME Group managing director Tim McCourt said that the exchange expects a high demand for a new product, especially from Asian crypto traders and miners.