The analyst named the price of bitcoin …

The analyst named the price of bitcoin …

Bitcoin’s big surge: What’s behind cryptocurrency’s 2021 rise

Contents

The analyst named the price of bitcoin with a real correlation with S&P 500
CONTENT

  • Bitcoin, so far, is not strongly correlated in price terms with S&P 500.

  • However, the S2FX model is still relevant, according to the crypto community.

  • Ambiguity over the effectiveness of the correlation between Bitcoin and S&P 500 remains in effect.

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Bitcoin should be near its all-time highs if it really correlated with the US S index&P 500.

Bitcoin is not yet highly correlated with the US S stock index&P 500. At least in terms of price action.

This opinion was expressed by the famous cryptocurrency analyst PlanB (@ 100trillionUSD) on his Twitter page.

In particular, the analyst said that given the correlation of bitcoin with the index, as well as the rapid recovery after the March collapse, now bitcoin would have to be worth $ 18,000 if the correlation really took place.

At the same time, the creator of the popular Stock-to-Flow model assures that even in the event of a collapse of the stock index and bitcoin price, the development of the cryptocurrency still fits into the Stock-to-Flow Cross Asset (S2FX) model.

Recall that the S2FX model simulates the development of the bitcoin price up to $ 288 thousand, provided that the market capitalization of bitcoin grows to $ 5.5 trillion..

To be or …

Correlation of the largest cryptocurrency by capitalization with the S index&The P 500 is constantly being questioned in the cryptocurrency market.

In early May, there were discrepancies in the price behavior of the compared markets. Then the leading cryptocurrency was able to strengthen in price, but S&P 500 fell.

However, BTC and the index later merged again, confirming that despite the short-term deviations, overall, the two assets continue to correlate with each other..

Trader @ZackVoell, who tweeted Bitcoin (left) and SPX (right) charts, has a different opinion..

The analyst named the price of bitcoin ...

On the chart, dating from the beginning of May, it can be seen that Bitcoin is gradually increasing in price, while the American stock index is sharply declining..

last hope

Despite clear disagreements about the correctness of the models from PlanB, there is still hope in the cryptocurrency community that the price of bitcoin will rise.

The analyst named the price of bitcoin ...

Citing fixed inflation, bitcoin’s price, according to cryptocurrency proponents, will still rise, albeit not that much in value..

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The analyst named the price of bitcoin ...

Nevertheless, there are those who believe that the limited emission of bitcoin will not help the asset soar to new highs..

According to Steve Forbes, editor-in-chief of the American financial and economic magazine Forbes, many in the cryptocurrency community make the mistake of believing that if Bitcoin is limited in emission, then this creates value..

What do you think? Does Bitcoin Really Meet the S2FX Model Predictions? Share with us with your thoughts in the comments and join the discussion in our Telegram channel.

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