Referring to Bitcoin as a commodity seems to show a maturing view of the asset.

Multiple JPMorgan Chase experts analyzed Bitcoin’s current price when compared to other commodities, and noted that the asset could see selling pressure ahead. 

“The JPMorgan strategists said they calculated an intrinsic value by effectively treating Bitcoin as a commodity and looking at the marginal cost of production,” according to an Oct. 14 article from India’s BloombergQuint media outlet — a partnered entity involving Bloomberg and Quintillion Media. The article added:

“Bitcoin faces a ‘modest headwind’ in the short term based on an analysis of bets in the futures market and an estimate of the cryptocurrency’s intrinsic value, according to JPMorgan Chase & Co.”

Bitcoin futures prices often trade slightly above or below the going market rate for the asset, also known as its spot price. Futures prices tend to get closer to spot prices as contracts near their expiration dates. Futures prices above spot can indicate bullishness, while prices below spot can indicate bearish expectations.

JPMorgan’s specialists reported that Bitcoin's bullish positions outnumber its bearish positions, according to a futures-based indicator. The strategists also mentioned an increase in buying pressure resulting from the recent trend of mainstream financial giants entering Bitcoin; Paul Tudor Jones, MicroStrategy, and Square have all purchased heavy Bitcoin bags in 2020.

Bitcoin has gained mainstream notoriety as a commodity in recent years, with participants commonly comparing to the asset as digital gold. The fact that traditional analysts have begun to view Bitcoin as a commodity could indicate a continuation of the asset's mainstream trajectory.