The new wave of Bitcoin price growth observed in recent weeks largely resembles the patterns of 2017 and 2018, when the rapid rise of cryptocurrency was followed by a sharp decline in quotations. JPMorgan wrote about that in the note to investors last week, reports Bloomberg.
Also, according to analysts of the bank, with the latest growth Bitcoin rose above its "internal value".
They came to this conclusion considering the cryptocurrency as a commodity and taking the "production cost" as a basis - this includes computing power, electricity costs and energy efficiency of mining equipment.
"Over the past few days, the real price of Bitcoin has significantly exceeded marginal costs. This discrepancy between actual and internal cost is reminiscent of a rally at the end of 2017, and then this discrepancy was eliminated by lowering real prices," analysts write.
At the same time, they recognized that it is not easy to determine the internal or fair value of any cryptocurrency.
Opinions differ on this. Some researchers say that Bitcoin has no fundamental value, while others say that fair value is significantly higher than current prices.
Recall that last week was marked by the steady growth of Bitcoin. So, on May 16, the price of the first cryptocurrency updated the maximum in 2019 at $8,319, but could not stay at this level, after which the correction began, which deteriorated sharply when an unknown trader realized the sale of 5,000 BTC at $6200 on the Bitstamp exchange.
By the weekend Bitcoin, however, returned to the marks in the region of $8,000, just below which is being traded on Monday morning.
