According to analysts at JPMorgan, the largest bank in the US, Bitcoin is trading at twice its fair valuation. JPMorgan stated in its latest report that they saw the fair value of the highest cryptocurrency at $ 25,000. The report also examined the impact Tesla has, why Tether is BTC’s biggest queue risk, the rise of CBDCs, and what the future will bring for cryptos.

 

 

“Bitcoin is much more expensive than necessary”

The February 18 report is JPMorgan’s latest report that gives an insight into the world of fintech, blockchain and digital currencies. It comes at a time when Bitcoin is rising to an all-time high and getting approval from the world’s leading investors and innovators.

According to JPMorgan’s strategists, Bitcoin is performing well. But the real story lies in the rise of the sixth largest bank globally in digital finance. However, the best crypto will continue to fight for its place alongside gold as an alternative currency. The report writes that to match the market value of gold, BTC must trade at $ 146,000. Institutional investors must take over the market to reach this price.

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“The appeal of bitcoin and its competition with gold as an alternative currency will likely continue as generation Y becomes a more important component of the investors’ universe and shows their preferences for” digital gold “over traditional gold.”

“The value should be 25 thousand dollars”
Analysts also claimed that BTC was “overvalued”.

It has already passed gold in terms of venture capital. Its fair value is $ 25,000 and its current price is over $ 57,000. The mining cost of $ 11,000 is the lower limit of the fair value range.

JPMorgan also touched on the narrative that Tesla will attract more companies to invest in Bitcoin. The bank believes Tesla is an outlier and most companies still view Bitcoin as too volatile to invest.

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