There has been a massive surge in the price of the most important digital asset during the past few days.
More experts were claiming that after BTC was able to surpass the $8,000 level, we can expect the digital asset to head to $10,000.
They claimed that when the crypto surpasses that level as well, the FOMO will go mainstream and more money would be pouring into the crypto market.
But things did not go like that, and BTC surprised everyone when it also crashed during the past Friday.
On the other hand, the fact that BTC was able to go from April’s $4,200 to $8,350 this month is extremely important o note, and it shows that the overall sentiment in the market is definitely a positive one.
BTC might be trading above its intrinsic value
A lot of crypto experts are believing that the latest surge of the coin is much more significant compared to the one in 2017, because now, there are stronger fundamentals of the market involved.
But it seems that there’s one Wall Street company that doesn’t agree.
As Oracle Times reported, NewsBTC said that in a recent research note from JP Morgan, obtained by Holger Zschaepitz, a German economist and author, it was explained that BTC is currently trading above its “intrinsic value.”
It’s also worth noting that Tom Lee also claimed that BTC is trading two times its intrinsic value, especially during the bulls.
— Holger Zschaepitz (@Schuldensuehner) May 17, 2019
Better infrastructure and stronger fundamentals
Anyway, NewsBTC explains that this assumption is not necessarily correct.
They brought up Dan Held who is the co-founder os Inteledger, and he’s recently pointed out the fact that the ecosystem’s fundamentals and infrastructure are much better compared to the 2017 situations.
There have been a lot of positive price-related predictions this year regarding cryptos, and also mass adoption is expected to take place this year as well.
Fergus Reynolds joined Crypto Daily Gazette as managing editor in January of 2018 and is helping to lead the digital media startup’s next phase of expansion. A veteran business journalist with more than 10 years experience economics, Fergus has published content for Huff Post and Buzz Fee and was among the earliest journalists covering bitcoin and the innovations it later inspired. Fergus tells us he has “several” bitcoins.