JPMorgan: The internal cost of bitcoin coincides with its market price
According to JPMorgan strategic, Nicholas Panigirtzoglu, the internal or fundamentally sound cost of bitcoin recently began to correspond to the market price of cryptocurrency. This is reported by The Block with reference to the expert report.
Panigirtzoglu is convinced that the gap between the indicators was reduced thanks to halving. According to his observations, in January of this year, the internal value of the BTC was lower than the market price or, in other words, the first cryptocurrency was reassessed.
Nicholas Panigirtzoglu from Jpmorgan is sure that Bitcoin is currently evaluated by the market “Fair”.
In the model from JPMorgan, bitcoin is considered as a product, the marginal costs are taken into account when it was mined, the computing power of the equipment and the cost of electricity.
“Taking into account the Bitcoin halving on May 11, the internal cost of Bitcoin actually doubled”, – Panigirtzoglu emphasized.
He added that the subsequent decrease in the hashrate by 20% and BTC prices also contributed to the reduction of the gap between the costs.
However, according to the Byte Tree service, the current “fair value” of BTC is at $ 7027 at a market price near $ 9600.
The BYTE TREE service NFTs will be available calculates the “fair value” of bitcoin based on the ratio of market capitalization to transactional activity (NVT Ratio). According to this service, Bitcoin is overvalued by 35.9% as of 31.05.2020.
According to this model, such a low value of the indicator is largely due to slight demand for bitcoin transaction.
FORKLOG previously reported that JPMorgan Chase will pay $ 2.5 million to resolve a collective lawsuit. Claims are related to additional commissions and increased interest, which the institution charged with transactions associated with cryptocurrencies.