Bitcoin's Market Price Is Above Its Intrinsic Value, Says JPMorgan

  • JPMorgan analyst note claims bitcoin's intrinsic value is still below its current market price.
  • Analysts found an increase in interest from institutional clients in anticipation of CME Group options. 

A new report by JPMorgan claims the intrinsic value for bitcoin is still below its current market price, providing some “downside risk” for investors. 

According to the note published Jan. 10 and reported by Bloomberg, the market price for the flagship cryptocurrency is trading above its calculated intrinsic value. JPMorgan strategist Nikolaos Panigirtzoglou wrote in the note, 

The market price has declined by nearly 40% from its peak while the intrinsic value has risen by around 10%...the gap has not yet fully closed, suggesting some downside risk remains.

However, the report explained that institutional interest in bitcoin-related contracts appears to be on the rise, with high anticipation for the launch of CME Group Inc. options. Panigirtzoglou said there “has been a step increase in the activity of the underlying CME futures contract,” in the days leading up to the launch of options trading, culminating in a 69 percent increase from the end of 2019.

He continued, 

This unusually strong activity over the past few days likely reflects the high anticipation among market participants of the option contract.

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Bitcoin Investors Reportedly Lose Millions in South African Exit Scam

Michael LaVere
  • VaultAge Solutions CEO Willie Breedt is being accused of making off with millions in investor bitcoin.
  • Breedt allegedly fled the country for Mozambique and has not communicated with investors since December 2019. 

South African cryptocurrency investors are accusing the CEO of VaultAge Solutions of stealing millions in crypto before going on the run. 

According to a report by AllAfrica, Willie Breedt, the CEO of cryptocurrency investment firm VaultAge Solutions, is presumed to be on the run after not making public communications since December 2019. The report claims Breedt was speculated to be staying near the town of Jeffrey’s Bay and that his whereabouts where being looked into by the country’s criminal investigation unit. 

However, South Africans who invested cryptocurrency with the now-defunct firm fear the CEO may have fled the country for Mozambique. 

Breedt is accused of stealing millions from bitcoin investors. The report claims VaultAge Solutions is not registered as a legitimate financial institution with the Financial Services Conduct Authority (FSCA), despite having more than 2000 investors. 

The report quoted investor Lettie Engelbrecht from Krugersdrop, 

We are pensioners and invested R200 000. From December until April, we received payments on the growth of our investment. Since then, we never got any money. We are desperate and living on a shoestring budget.

One South African investor reportedly had deposited more than R6 million ($342,000) with Breedt’s company. 

Breedt delivered a written reply to local outlet News24, explaining, 

I am busy attending to the commitments I have made to members. The commitment is to have all the initial capital paid back by 31 May.

Colonel Katlego Mogale of the Directorate for Priority Crime Investigation (DPCI) said authorities are investigating the case but cannot reveal any more information “at this stage.”

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