The inventor of the Bitcoin stock-flow (S2F) ratio, the popular crypto analyst said that BTC is significantly worthless, based on the strong correlation of the S&P 500 with its market value.
According to the cryptocurrency analyst, the Federal Reserve’s attempt to print trillions of dollars in the form of monetary relaxation will result in both America’s ‘Bellwether’ index and Bitcoin reaching higher levels.
The Real Value of Bitcoin (BTC) is $ 18,000
The analyst explained his opinion as follows:
“With the stock market correlation, the S&P 500 earned 2.6x ($ 1,200 -> $ 3,100) and BTC earned 1900x ($ 5 -> $ 9,500). Bitcoin looks like a high beta stock. It seems that the central bank QE, which revives the stock exchanges worldwide, is printing trillions of money, helping Bitcoin! ”
The analyst says that according to his analysis, BTC and S&P 500 tend to act together. After mapping the correlation between the two assets, PlanB emphasized that BTC is significantly worthless and that its current market value should be $ 18,000. PlanB put forward an equation stating this situation.
Based on this equation, PlanB said it believes that S&P 500 will be traded around 4,300 when Bitcoin reaches its $ 288,000 S2F target. Preston Pysh, a cryptocurrency market analyst and podcast publisher, announced that he shares the same thoughts with PlanB, and said the pair will end soon as central banks continue to fill the system with money.