For some reason, this Bitcoin (BTC) rally has been met with cynical teardowns by many analysts, who state that the cryptocurrency market remains overvalued, despite the 80% drawdown and then 100% recovery off its lows. As reported by Ethereum World News previously, in a recent research note from JP Morgan, it was explained that Bitcoin is trading above its “intrinsic value”.
The note (seen below) suggests that the cryptocurrency’s “intrinsic value” is the estimated cost of production per unit or mining costs. In fact, JP Morgan’s estimates show that BTC is currently (as of May ~15th) trading above its breakeven mining cost by almost two times. Or in other words, BTC is trading at $7,700, when it costs around $4,000 to purportedly mine one coin.