HomeBlockchainBlockchain NewsJPMorgan Reveals BTC's Real Worth

JPMorgan Reveals BTC’s Real Worth

Audio version of the article

The U.S. investment bank thinks that the current price above $50,000 is way, way, way too high.

Bitcoin has had a wild weekend.

After hitting highs of $58,330.57 on Sunday — a new record — the world’s biggest cryptocurrency tumbled by more than 10% as the working week began, falling below $50,000 at one point.

The decline came after a note by JPMorgan strategist Nikolaos Panigirtzoglou warned that BTC’s liquidity has dropped at an alarming rate. According to Bloomberg, he wrote on Friday:

“Market liquidity is currently much lower for Bitcoin than in gold or the S&P 500, which implies that even small flows can have a large price impact.”

Crucially, this means that the analyst is saying that dramatic moves for BTC could happen in either direction — and potentially with little warning.

JPMorgan: Bitcoin is Overvalued 

In a separate report released on Feb. 18, JPMorgan doubled down on its assessment that Bitcoin is overvalued — and said a “fair value range” for the world’s biggest cryptocurrency is found between $11,000 and $25,000. The investment bank added:

“In the long term, we estimate that theoretically Bitcoin prices would need to rise to $146,000 for the market cap to match the total private sector investment in gold via ETFs or bars and coins.”

JPMorgan even described Bitcoin as an “economic side show” in the current climate, and said the real post-pandemic story lies in the acceleration of digital payments. Analysts concluded by warning that few companies are likely to follow Tesla’s lead by snapping up BTC as a reserve asset.


This article has been published from the source link without modifications to the text. Only the headline has been changed.

Source link

- Advertisment -

Most Popular

- Advertisment -