A new JPMorgan report states that Bitcoin's intrinsic value is lower than the current price, so there is a “downside risk” for investors.


  • JPMorgan analyst note states that the intrinsic value of bitcoin is still below its current market price.
  • Analysts have found increased interest from institutional clients in anticipating CME Group options.

According to a note published on January 10 and reported by Bloomberg, the market price of the main cryptocurrency is trading above its calculated intrinsic value. JPMorgan strategist Nikolaos Panigirtzoglou wrote in the note:

“Market price has fallen by almost 40% from its peak, while intrinsic value has increased by around 10%… the gap has not yet been fully closed, suggesting that there is still a downside risk.”

However, the report explained that institutional interest in bitcoin-related contracts appears to be increasing, with much anticipation for CME Group Inc. options to be launched.

Panigirtzoglou said that “there was an increase in the activity of the underlying CME futures contract” in the days leading up to the launch of options trading, culminating in a 69% increase at the end of 2019.

He continued,

“This extraordinarily strong activity in recent days probably reflects the high expectation among option contract market participants.”

What is your opinion about the intrinsic value of Bitcoin? Is it really below the current market price? Leave a comment below!

Continue reading: Correlation Between Gold and Bitcoin Does Not Exist, Study Shows

LEAVE A REPLY

Please enter your comment!
Please enter your name here