The internal value of bitcoin is growing, but remains below the market price, which indicates the possibility of a fall in the latter. This opinion was expressed by the strategist of JPMorgan Chase Nikolaos Panigirtzoglu, reports 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.
Source: Bloomberg
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“The market price fell by almost 40% from its peak, while the domestic price rose by about 10%. The gap is not yet completely closed, which indicates a certain risk of decline “, – Panigirtzoglu wrote in a note dated January 10.
The strategist of the American bank also noted the activity of institutional players in the CME Group bitcoin futures market, which he associated with the upcoming launch of the bitcoin options exchange. Open interest grew by 69% compared to the end of the year, he stressed.
“This unusually strong activity in the last few days probably reflects the high expectations of market participants in option contracts,” – considers Panigirtzoglu.
CME Group will launch Bitcoin options on Monday, January 13th.
The analyst recalled that launch 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.
Formerly managing director of CME Group Tim McCourt declaredthat the exchange expects high demand for a new product, especially from Asian crypto traders and miners.
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