JPMorgan analyses Bitcoin as a commodity and predicts a downward trend for the crypto currency in the short term.
Several analysts from the major investment bank JPMorgan Chase have compared Bitcoin to other commodities, concluding that the market-leading crypto currency will soon be on the decline again.
„JPMorgan analysts have calculated the intrinsic value of Bitcoin by considering the crypto currency as a commodity, using marginal cost of production as a benchmark,“ according to a BloombergQuint article published on October 14th. And further:
„Bitcoin faces a slight headwind in the short term, as evidenced by the analysis of the futures market and an estimate of the intrinsic value of the crypto currency by JPMorgan Chase“.
The market value of Bitcoin Sunrise futures is often just above or below the actual price of the currency. As a rule, the futures approach 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 find that the number of positive futures contracts exceeds the number of negative futures. They also see an increasing buying interest, which they attribute to the fact that recently well-known investors such as Paul Tudor Jones, MicroStrategy and Square have invested large sums in Bitcoin.
In recent years, the crypto-currency has increasingly established itself as a commodity, which is mostly compared to gold. The fact that mainstream analysts are now also classifying Bitcoin as a commodity could indicate that this reading is becoming increasingly popular.