Bitcoin Price Movements Similar to 2017, Before Crashing from All-Time High: J.P. Morgan

Omar Faridi

Nikolaos Panigirtzoglou, the Managing Director for Global Market Strategy at J.P. Morgan Chase, has argued that Bitcoin (BTC) is currently trading at a price which exceeds its “intrinsic value.”

Panigirtzoglou, a former financial economist at the Bank of England (BoE), recently told Bloomberg that bitcoin’s current price movements are similar to when it reached an all-time high of nearly $20,000 on December 17th, 2017.

Panigirtzoglou also mentioned that the pseudonymous cryptocurrency’s price could fall just as sharply as it did following the historic crypto market bull of late 2017 and early 2018. According to the J.P. Morgan financial strategist, it’s possible to get a fair estimate of bitcoin’s “intrinsic value” by determining and factoring in its “cost of production.”

Bitcoin Price “Moving Sharply Over Marginal Cost”

Panigirtzoglou explained that Bitcoin’s cost of production may be calculated by accounting for the total amount of computational power securing its network, overall electricity costs to maintain the Bitcoin blockchain, and the energy efficiency of the hardware equipment being used by miners.

Commenting on the most recent bitcoin price movements, Panigirtzoglou noted:

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.

"Hell Of A Bullish Weekly Close"

Panigirtzoglou acknowledged that “defining an intrinsic or fair value for any cryptocurrency is clearly challenging.” He added that some researchers argue bitcoin has “no fundamental value” while others estimate the cryptoasset’s “fair value in excess” of current market prices.

Meanwhile, Twitter user “The Crypto Dog” (@TheCryptoDog), a widely-followed crypto market analyst, believes the past week was quite bullish for bitcoin:

Bitcoin Price "Heating Up" For $10,000

Twitter user “Crypto Rand” (@crypto_rand), a prominent bitcoin trader and investor, has argued that the world’s most dominant cryptocurrency is exhibiting price movements which suggest that it might soon cross the $10,000 mark.

Bitcoin Is "Insanely Overbought"

Josh Olszewicz, an experienced technical analyst, tweeted to his nearly 120,000 followers on May 19th, 2019 that bitcoin is “insanely overbought.” This, according to technical indicators such as the Ichimoku Cloud, which is used to estimate key resistance levels and patterns for the bitcoin price.

Bitcoin Is ‘Worthless’ Says John McAfee After Predicting It Would Hit $1 Million

Francisco Memoria

Eccentric cybersecurity entrepreneur John McAfee has bashed bitcoin claiming the flagship cryptocurrency is “worthless,” even though he had predicted it would reach $1 million by the end of this year, before calling off his prediction.

On social media, McAfee responded to a user who said he believes the cybersecurity expert was only followed because of his bitcoin price prediction, to which McAfee responded bitcoin is “worthless.”

In response various users criticized McAfee for past predictions he got wrong – including for various altcoins – while others tried to defend BTC has value. McAfee is well-known in the cryptocurrency space for a famous $1 million bitcoin price prediction.

On social media, the eccentric entrepreneur initially claimed, in July 2017,  the price of one bitcoin would be above $500,000 by the end of 2020. In November ,when the price of bitcoin was moving toward its $20,00 all-time high by December 2017, McAfee said he predicted the $500,000 mark based on “a model that predicted $5,000 at the end of 2017.”

As such, he revised his prediction to say BTC would hit $1 million by the end of 2020. I January of this year, after the cryptocurrency endured an year-long bear market and subsequently failed to recover to its previous all-time high, McAfee claimed the prediction was a “ruse to onboard new users” and dropped the prediction.

In a tweet revealing the “ruse” McAfee claimed bitcoin is “ancient technology” as newer blockchains have “privacy, smart contracts, distributed apps and more.” McAfee would later on criticized the flagship cryptocurrency, calling it “old” and “clunky.” Per his words, bitcoin is the “Hotmail of crypto.”

Notably billionaire Chamath Palihapitiya, the CEO of Social Capital, has recently argued that the price of bitcoin may increase significantly over the next decade to reach $1 billion per coin.

Featured image via Unsplash.