Cryptocurrency analyst PlanB, known for adapting the stock-flow model to Bitcoin, claims to be significantly below its value, based on the strong correlation of Bitcoin with the S&P 500 Index.

The quantitative analyst says that the FED’s trillions-dollar monetary expansion policy will send both America’s leading index and the largest cryptocurrency to higher levels:

“Short story about Bitcoin – Stock market correlation. S&P 500 increased 2.6 times (from $ 1200 to $ 3100), Bitcoin increased by 1900 times (from $ 5 to $ 9500). Bitcoin looks like a high beta stock. It seems that the trillions of monetary relaxation money that the central banks are pushing up the stock markets worldwide is flowing into Bitcoin! ”

The analyst thinks that there is a co-integrated relationship between S&P 500 and Bitcoin, and emphasizes that BTC is below its value with its current market price based on S&P 500. PlanB argues that the fair value should be $ 18,000.

Based on this equation, PlanB stated that the S&P 500 will be traded at around $ 4300 when the price target of the Bitcoin model created by itself is $ 288,000.

Ethereum founder opposes the famous model of PlanB

On the other hand, Vitalik Buterin, the founder of Ethereum, was against PlanB’s famous Bitcoin chart. Buterin stated that he did not participate in the stock-flow model, but also admitted that the lack of a consistent correlation between Bitcoin’s price increases and supply cuts every 4 years would not be sufficient for the model to be invalid.

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