Krutika Adani
A report by JP Morgan finds Bitcoin overpriced and indicates that a crash might be imminent for the top crypto.
The report says the first reason is that Mt Gox users could trigger a sell-off in Bitcoin after they receive their 90,000 Bitcoin compensation.
The second reason in the report is that Bitcoin's price ($66k) is much higher than its mining cost ($47k), making Bitcoin overvalued.
Another reason stated in the report, indicating an overpriced Bitcoin, is that the crypto’s value was much higher than gold. According to its logic, the report says Bitcoin should be around $53k.
If Mt. Gox users sell their entire $6bn worth of Bitcoins, they might pin down the price below $45k, lower than that caused by the German govt sell-off.