JPMorgan Says Bitcoin’s Jump Mirrors 2017’s Boom-Bust Pattern
- Price has diverged from ‘intrinsic level’: Panigirtzloglou
- Biggest cryptocurrency advances on Monday as much as 17%
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Bitcoin may have gotten ahead of itself with its recent rally, according to JPMorgan Chase & Co.
The best-known cryptocurrency has surged beyond its “intrinsic value,” mirroring a similar move in 2017 which preceded a slump, wrote strategists including Nikolaos Panigirtzoglou in a note Friday. They came to this conclusion by treating Bitcoin as a commodity and calculating its “cost of production” using inputs such as estimated computational power, electricity expense and hardware energy efficiency.