Bitcoin intrinsic value on the rise as anticipation builds regarding CME options launch

  • Bitcoin’s intrinsic value if below the market price according to JP Morgan’s strategists.
  • The gap between the intrinsic value suggests that Bitcoin is on the risk of more breakdown.

The futures market is beginning to shape trends in the crypto space while attracting a lot of interest from the institutional arena. According to a report published by Bloomberg anticipation is mounting across the market regarding the soon to launch CME Group options.

Although similar options already exist in the market courtesy of Bakkt, interest in the products has been small. However, JP Morgan’s strategists in the leadership of Nikolaos Panigirtzoglou said last Friday that the offering on CME will bring up the volumes.

“There has been a step increase in the activity of the underlying CME futures contract.” Panigirtzoglou added, “This unusually strong activity over the past few days likely reflects the high anticipation among market participants of the option contract.”

JP Morgan says that Bitcoin’s intrinsic value has been growing. Despite the growth, the value is still falling beneath the market price. According to Panigirtzoglou:

The market price has declined by nearly 40% from its peak while the intrinsic value has risen by around 10%, the gap has not yet fully closed, suggesting some downside risk remains.

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