PMorgan Chase and co strategists claim that Bitcoin’s (BTC) price is unreasonably higher than their approximate fair value. This is why analysts think that Bitcoin, and most cryptocurrencies, have been unable to be presented as a hedge to the equities.
JPM’s Opinion of Bitcoin (BTC) Changed Again
JPM had been passably positive on Bitcoin (BTC) for a few months. However, after claiming that it had gotten a hold of some of the gold’s market share because of all of its sudden insanely high demand, JPM changed its judgement on cryptocurrency.
Strategists led by Nikolaos Panigirtzoglou, the managing director at JPMorgan, had questioned how long the steady rise of Bitcoin’s (BTC) actually lasts. They also stated earlier this week that Bitcoin’s (BTC) instability suspends it from surging more.
Throughout the more recent Bitcoin (BTC) study, the analytics mentioned its instability once more. They also said that most of the value of Bitcoin (BTC) these days comes from the fact that owning cryptocurrency has become a trend; the hype creates an unrealistic demand, and since it can be bought from anywhere in the world, the demand is unlimited.
Even though the JPM strategists could not provide their accurate, fair value of Bitcoin (BTC), they said that Bitcoin (BTC) value, in reality, isn’t even worth the price that it was traded at. When they joined Deutsche Bank, they said that Bitcoin’s (BTC) was in a bubble state and could change its trend and go downhill.
They used to be firm believers that Bitcoin’s (BTC) price would increase as long as Grayscale’s Bitcoin Trust’s demand was there. Since Tesla has recently bought a lot of Bitcoin (BTC), it’s driving the demand higher. They are saying that once the downwards spiral starts, even Tesla will not be able to save it.
In disparity to JPM’s opinion comes Rick Rieder. He is the managing director of BlackRock’s Chief investment officer of fixed income, the world’s largest asset management company. He recently stated that BlackRock could invest in bitcoin as it was a unique investment, saying that it was better than keeping a cash horde. This opinion is the exact opposite of JPMorgan.