(BlockBar) One of the largest banks in the world, JPMorgan, says that the Bitcoin is experiencing the similar rally which it experienced two years ago. The bank maintains that the price spike means that BTC is trading above its intrinsic value. The price of the leading cryptocurrency has reached the $8,000 mark again which had got dropped below that level during the weekend. JPMorgan was treating Bitcoin as a commodity and calculated its intrinsic value and came on a conclusion that its trading above its intrinsic value.
The leading bank wrote that the actual price of BTC had surged sharply over its marginal cost over the past few days. JPMorgan believes that the divergence between the real and intrinsic values of the cryptocurrency mirrors the Bull Run experienced in 2017. The difference back then was resolved mostly by a crash in actual prices. The strategists at JPMorgan wrote that defining the intrinsic value for a cryptocurrency is a hard task. Some researchers believe that the views on Bitcoin vary because the cryptocurrency doesn’t have any fundamental value but others believe that the intrinsic value is way above the current price.
A report was revealed earlier this year that analysts at JPMorgan believe that the intrinsic value of Bitcoin was around $2,400. The bank stated that the figure is for the fourth quarter of 2018. The Bitcoin price has been on a rally over the past few weeks. It is worth noting that it was trading below $4,000 but now it has surged to trade just above $8,000.
It is to be noted that JPMorgan and its CEO, Jamie Dimon, have been against Bitcoin for a while. Dimon called Bitcoin a fraud in 2017 and threatened its bank’s employees to be fired if they were caught dealing with cryptocurrencies.While speaking at a conference in Los Angeles, Dimon maintained that although his views about Bitcoin hadn’t changed, but he repented calling it a fraud. He stated that he hasn’t changed his views, but instead, doesn’t care about the cryptocurrency anymore. It is also worth noticing that JPMorgan’s stance on digital currencies have changed as the bank has developed its own crypto called the JPM Coin. The digital currency is designed to enable the bank to carry out instantaneous transactions using blockchain tech.
