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George Ma
June 1 12:45

JPMorgan: the internal value of the bitcoin is the same as its market price

According to Nikolaos Panigirtzoglou, a strategist at JPMorgan, the internal or fundamentally justified price of Bitcoin has recently begun to correspond to the market price of the cryptocurrency. 
Nikolaos Panigirtzoglou, a strategist at JPMorgan, is convinced that the gap between indicators has narrowed due to halving. According to his observations, in January of this year, the internal value of the BTC was below the market price or, in other words, the first cryptocurrency was overvalued.
The model from JPMorgan treats bitcoin as a commodity, taking into account the marginal cost of its extraction, the processing power of the equipment and the cost of electricity.
He added that the subsequent reduction in the hash rate by 20% and BTC prices also contributed to narrowing the gap between costs.
However, according to Byte Tree service, the current "fair value" of BTC is at US$7027 with a market price close to US$9600.
The Byte Tree service calculates the "fair value" of the bitcoin based on the ratio of market capitalization to transactional activity (NVT Ratio). According to this service, bitcoin is overvalued by 35.9% as of 31.05.2020.
According to this model, this low value is largely due to the low demand for bitcoin transactions.