JPMorgan Strategists See ‘Modest’ Headwind for Bitcoin Price

Bitcoin faces a “modest headwind” in the short term based on an analysis of bets in the futures market and an estimate of the cryptocurrency’s intrinsic value, according to JPMorgan Chase & Co.

A positioning indicator derived from futures shows that “there still appears to be an overhang of net long positions,” strategists including Nikolaos Panigirtzoglou wrote in a note Tuesday. A drop in Bitcoin in September eliminated much “froth” but it remains about 13% higher than an estimate of intrinsic value, they said.