Bitcoin (BTC) trades 25% below its net asset value. That is the opinion of the American bank JP Morgan in a recently published report.
While JP Morgan does not provide bitcoin or crypto services, it does issue research reports every now and then. The bank shares its findings about the emerging crypto sector. This time, it looked at the situation regarding bitcoin after the recent halving.
🤖🔍 JPM: Full Study on #Bitcoin Mining, Intrinsic Value and Open Interest.#BTC pic.twitter.com/n4PVjhR8iu
— PiQ (@PriapusIQ) May 24, 2020
In the Tweet , published May 22, the analysts at JP Morgan state that bitcoin is basically trading below its actual value. This value is calculated based on the costs that miners incur to mine a bitcoin.
On the second page of the document, it can be seen that bitcoin has been trading well above its estimated net asset value since July 2019. However, the bitcoin price is now trading below intrinsic value as a direct result of the halving. According to JP Morgan, bitcoin’s true price is somewhere between $10,000 and $11,000.
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However, the bitcoin miner capitulation seems to continue . Since the halving, the hash rate has entered a downward trend. More and more miners turn off their older devices because they simply can no longer generate profit.
The bitcoin price seemed to recover somewhat in recent days . Today, the price even rose above $9,000 again. Here, however, the resistance turned out to be too strong, after which bitcoin still went down.
