Analysts at JPMorgan, one of the largest investment banks in the United States, say that Bitcoin is trading at twice its fair value. Analysts consider $25,000 to be the fair- trading price value of the world’s leading cryptocurrency. In short, strategists believe that Bitcoin is highly overvalued.
JPMorgan’s Report
On 18th February, a report was compiled by experts at the 5th largest bank in the world. The report explored the depths of blockchain and the future of digital currencies.
Currently, the market price of the top digital coin is standing at $57,817. Investors and corporations are more than ever curious and interested in buying Bitcoin. Almost every expert and analyst is surprised at the impressive surge of Bitcoin and is appreciating the bull market. Although, analysts at JPMorgan have a different perspective of the bullish market. They believe that Bitcoin’s surge is connected proportionally to the rise of digital finance. But there is no doubt that the leading crypto is turning out as an alternative asset to gold. In the report, Bitcoin was addressed as “digital gold”, and it was stressed that investors prefer “digital gold” over the gold bullion to make Bitcoin the alternative to gold. It is also important for Bitcoin that institutional investors come into play. Numerically, Bitcoin would have to trade at $146,000 to compete with the “traditional gold”.
Analysts have claimed that Bitcoin has crossed gold in risk capital terms. Experts say that Elon Musk’s Tesla will attract corporates to buy or invest in Bitcoin. But strategists at the US’s investment banking company stated that, unlike Tesla, most corporations are still hesitant to invest in the leading crypto.
What Future Holds for Bitcoin
JPMorgan’s strategists say it is too early to think of Bitcoin as a reliable asset. Bitcoin’s current bull cycle is impressive compared to the top asset’s price appreciations in the past. The world’s top cryptocurrency was also considered a speculative bubble, but nowadays, the same asset is the most reliable one to own. JPMorgan explained that if Bitcoin is the speculative bubble of this decade, it might be the coming decade’s innovation.
Experts believe that Tether might be the financial risk for the flagship coin. According to them, Bitcoin is majorly dependent on USDT. Data from asset manager New York Digital Investment Group claims that 50-60% of Bitcoin trading is done via USDT.