JPMorgan strategist points to bitcoin price reduction factor

Bitcoin's intrinsic value is rising but remains below the market price, indicating a fall is possiblelast one. This opinion was expressed by the strategist of JPMorgan Chase Nikolaos Panigirtszoglu, according to Bloomberg.

Financial holding specialists are countingthe intrinsic value of the first cryptocurrency, considering it as a commodity and taking into account production costs, including computing power and electricity.

Source: Bloomberg

«The market price dropped by almost 40% fromits peak, while intrinsic value rose by about 10%. The gap is not yet completely closed, which indicates a certain downside risk»,Panigirtzoglou wrote in a note dated January 10.

American bank strategist also notedthe activity of institutional players in the bitcoin futures market of the CME Group, which is associated with the upcoming launch of the bitcoin options exchange. Open interest grew by 69% compared to the end of the year, he stressed.

«This unusually strong activity over the past few days likely reflects the high expectations of participants in the options contracts market».- says Panigirtzoglou.

CME Group will launch Bitcoin options on Monday, January 13th.

The analyst recalled that the launch of such a productplatform Bakkt last month caused a «fairly small» interest. He believes that, given the CME Group's dominance in regulated futures trading, a similar situation could arise in the Bitcoin options market.

Earlier, CME Group managing director Tim McCourt said that the exchange expects high demand for a new product, especially from Asian crypto traders and miners.