Bitcoin has been unstoppable in recent weeks. The digital currency continued its recovery after a horrid few months, hitting a 2019 high of $8,350. This was after the currency had traded below $4,000 just a month earlier. While many believe that the price is finally catching up to the developments in the field, U.S largest bank isnt as enthusiastic.
According to JPMorgan, bitcoin may have gotten ahead of itself with its recent rally. In a note to investors, some of the banks analysts suggested that the currency had surged beyond its intrinsic value. This, they believe, is a similar situation to the 2017 price rise which preceded a devastating slump.
The analysts wrote:
"Over the past few days, the actual price has moved sharply over marginal cost. This divergence between actual and intrinsic values carries some echoes of the spike higher in late 2017, and at the time this divergence was resolved mostly by a reduction in actual prices."
Read More:
https://nulltx.com/jpmorgan-likens-price-rally-to-2017/