According to a report by JPMorgan, the cryptocurrency market is still overvalued, and there is a chance of a correction in the price of the first cryptocurrency following the decrease in miner rewards.
CoinDesk reports that this analysis is based on the ongoing high open interest in Bitcoin futures.
The current price of the asset, around $61,500, is also significantly higher than the bank’s estimated volatility-adjusted gold price of $45,000.
The report also mentions the low level of venture capital funding in the industry, despite the recent recovery in the cryptocurrency market.
The reduction in miner rewards is expected to have the biggest impact on mining companies, resulting in a decline in hashrate and potential consolidation among major Bitcoin miners.
