As per JPMorgan strategists led by Nikolaos Panigirtzoglou “Despite Bitcoin being the largest cryptocurrency in terms of market capitalization, its intrinsic value appeared to be below market price“
Where is Bitcoin’s Price Moving?
Intrinsic value is an estimate of the actual or inherent value of the assets and according to JPMorgan, Bitcoin’s intrinsic value remains below market price. The latest document shared by MD Nikolaos in a report states that “The gap has not yet fully closed, suggesting some downside risk remains”.
However, at the time of reporting this, Bitcoin is trading at over $8100 with over 0.49 percent positive mark within the past 24Hs. More so, BTC is holding the dominance of 68.1 percent with the market capitalization counts at around $147,870,488,329 as per the data provided by Coinmarketcap.
However, the other side of comparison reveals that the price of Bitcoin is still down with around 40% from its $14000 peak from last year. More so, a trader who last week predicted that the price of Bitcoin will go up over $8000 is predicting bullish sight for Bitcoin. He went on to say that the Lucid Stop and Reversal indicator is signaling a stop and an entry in the opposite direction when it reverses, marking bullish view. He tweeted as follows;
The Lucid SAR is a full stop & reversal system. When the SAR reverses it signals a stop & an entry in the opposite direction.
Since Aug 2018 the Lucid SAR is beating #Bitcoin by over 1,000% & we just got the first buy signal since March 2019.🚀 pic.twitter.com/Hm74gOISd9
— Tyler D. Coates (alphαnalysis.io) (@Sawcruhteez) January 10, 2020
In addition, coming back to the JPM report, it mentioned that the market price of Bitcoin fell by some 40% from its peak whereas the intrinsic value has increased by around 10%. For the matter of the fact, JPMorgan points out the high institutional interest in Bitcoin-related contracts which anticipates the launch of CME Group Inc options on Jan 13, Monday. While it appears that the options contract will go live today, it remains to see how it affects the price of Bitcoin or may not affect at all.
Another exertion came forth by Adaptive Capital’s Willy Woo who stated that the data suggests clear signs of bull market re-accumulation. He asserted that we are in the re-accumulation phase of a bull market.
Are we in a $BTC bear market?
No, we are in the re-accumulation phase of a bull market. pic.twitter.com/OcMyxA4EIY
— Willy Woo (@woonomic) December 28, 2019