JPMorgan is analyzing Bitcoin as a commodity and predicting a downward movement for the cryptocurrency in the short term.
Several analysts at the large investment bank JPMorgan Chase compared Bitcoin with other commodities and came to the conclusion that the market-leading cryptocurrency will soon go down again
„The JPMorgan analysts calculated the intrinsic value of Bitcoin by considering the cryptocurrency as a commodity and using the marginal cost of production as a benchmark,“ according to a corresponding article by BloombergQuint on October 14th . And further:
„Bitcoin faces slight headwinds in the short term, based on an analysis of the futures market and an estimate of the intrinsic value of the cryptocurrency by JPMorgan Chase.“
The market value of Bitcoin futures is often just above or below the actual market value of the currency. As a rule, the futures come closer and closer to the market value as their contract period expires.
A higher price of the futures usually indicates a positive price development for Bitcoin, while a slightly lower price often means the opposite
Despite their slightly negative forecast, JPMorgan analysts note that the number of positive futures contracts exceeds the number of negative futures. In addition, they see increasing buying interest, which they attribute to the fact that well-known investors such as Paul Tudor Jones , MicroStrategy and Square have recently invested large sums in Bitcoin.
In recent years, the crypto currency has been able to establish itself more and more as a commodity that is mostly compared to gold. The fact that mainstream analysts are now classifying Bitcoin as a commodity could indicate that this reading is becoming increasingly popular.