‘ href=”https://www.newsbtc.com/dictionary/bear/”>bear. JP Morgan strategists noted that the cryptocurrency faces some headwinds as it begins to trade above its intrinsic value. The JP Morgan team has been covering crypto for years now.
The company added that there is seemingly an overhang of net long positions on crypto futures platforms, which may suggest that the market is overleveraged to the upside. This means that there is a potential that the market will move in favor of shorts to reset this positioning, thus avoiding overleveraging by long holders.
“The JPMorgan strategists said they calculated an intrinsic value by effectively treating Bitcoin as a commodity and looking at the marginal cost of production.”
Chart of BTC's price action since the start of 2017 with an instrinsic value analysis by JP Morgan analysts.
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