The strategist of the financial holding pointed to the reason for the future fall of Bitcoin
The strategist of the American financial holding JP Morgan, Nikolaos Panigirtszoglu, said that with the growth of the intrinsic price of bitcoin, it is still less than the market price. According to the expert, this may negatively affect the average cost of bitcoin in the market. The Intrinsic cryptocurrency price is calculated by specialists, taking into account all the costs of “production”, that is, coin mining, including electricity costs. [caption id="" align="aligncenter" width="820"]Source: Bloomberg Source: Bloomberg[/caption]
“The market price has declined by nearly 40% from its peak while the intrinsic value has risen by around 10. The gap is not yet fully closed, suggesting some downside risk remains” — the analyst said.
Also, Nikolaos Panigirtzoglu drew attention to the growing interest of institutional investors in the bitcoin futures market on the eve of the launch of the CME Group bitcoin options.
“This unusually strong activity over the past few days likely reflects the high anticipation among market participants of the option contract.” — said Panigirtzoglu.