JPMorgan Chase Bank noted that Bitcoin may face selling pressure ahead

Many JPMorgan Chase experts have analyzed the current price of Bitcoin when compared to other commodities and noted that the asset may experience selling pressure ahead.

“JPMorgan strategists say they have calculated intrinsic value by treating Bitcoin as a commodity and looking at marginal production costs effectively,” reported India’s BloombergQuint, adding that :

Bitcoin faces a breeze in the short term based on futures market analysis and estimation of the intrinsic value of cryptocurrencies, according to JPMorgan Chase & Co.”

Bitcoin fell more than 8% last month but held above $ 10,000 and has since risen back to $ 11,000. While the cryptocurrency has had a volatile year, the Bloomberg Galaxy Crypto Index has risen more than 80%, making it one of the best performing asset classes this year.

Bitcoin futures prices usually trade slightly higher or lower than the spot price. Futures prices tend to get closer to the spot price as the contracts are closer to expiration date. Futures prices above the spot price may indicate an uptrend, while prices below the spot price may indicate bearish expectations.

JPMorgan experts have reported that Bitcoin’s bullish positions are more than its bearish positions, according to a futures-based indicator. Strategists also mentioned an increase in buying pressure stemming from the recent trend of financial giants like Paul Tudor Jones, MicroStrategy and Square.

Bitcoin has become famous as a commodity in recent years, with participants often comparing their assets to digital gold. The fact that traditional analysts have begun to see Bitcoin as a commodity may indicate the continuation of the asset’s mainstream trajectory.

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