Several experts at JPMorgan Chase have analyzed the current price of bitcoin compared to other commodities and noted that the asset may face sales pressure in the future.

“Strategists at JPMorgan said they calculated the intrinsic value by actively working with bitcoin as a commodity and looking at marginal production costs,” said an article from 14th Indian Media, BloombergQuint, a partner company of Bloomberg and Quintillion Media. The article added:

According to JPMorgan Chase & Co.
Bitcoin futures contract prices often trade slightly above or below the prevailing market price of the asset, also known as the spot rate. Futures prices tend to approach spot prices when contracts approach expiration dates. Future prices above the spot rate may indicate a trend, while prices below the spot rate may indicate bearish expectations.

JPMorgan said that according to the index, based on futures, the number of bullish positions in Bitcoin exceeds its bearish. The strategists also mentioned increased buying pressure caused by the recent trend of large financial giants entering Bitcoin; Paul Tudor Jones, MicroStrategy and Square bought heavy Bitcoin packages in 2020.

Bitcoin has gained a bad reputation as a commodity in recent years, with participants generally comparing an asset to digital gold. The fact that traditional analysts have begun to see bitcoin as a commodity may indicate a continuation of the asset’s highway.

Source: CoinTelegraph