JP Morgan Analysts Say Bitcoin Could Be In For Some Modest Selling Pressure, Refer To Asset As A Commodity

Analysts at JP Morgan Chase compared Bitcoin's price to other commodities and determined that it may face selling pressure in coming months, according to a recent Bloomberg report.

Analysts wrote that Bitcoin faces a modest headwind based on an evaluation of bets in the futures market and an estimate of the currency's intrinsic value.

Futures prices typically move towards spot prices as contracts near their expiration dates. Futures prices above spot prices are typically seen as a bullish signal while prices below spot are perceived as bearish.

Bitcoin's bullish positions outnumber bearish ones, according to analysts. The growth of interest from mainstream financial players including Square and Paul Tudor Jones also adds to buying pressure.

It was notable that authors referred to Bitcoin as a commodity in the same class as physical gold, a classification some analysts had been hesitant to commit to. The shift may suggest Bitcoin is beginning to see wider acceptance in the traditional finance world. 

By Emily Mason

Related Articles