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Bitcoin’s intrinsic value, or the fundamental value, is now in line with its market value, according to JPMorgan strategist Nikolaos Panigirtzoglou.
research note published last week. In January, the strategist said bitcoin’s intrinsic value is lower than its market price, meaning bitcoin was overvalued.” data-reactid=”13″>The gap between the two values “has now effectively closed” after the halving, said Panigirtzoglou in a research note published last week. In January, the strategist said bitcoin’s intrinsic value is lower than its market price, meaning bitcoin was overvalued.
Now that both values are in line, it indicates that bitcoin is rightly priced.
The intrinsic value of an asset helps determine if it is overvalued or undervalued. JPMorgan calculates the intrinsic value of bitcoin by treating it as a commodity and by looking at its marginal cost of production, including computational power employed and electricity cost.
Bitcoin is currently priced at around $9,500 a piece.
Read more:Bitcoin’s intrinsic value is now in line with its market price, says JPMorgan
