Bitcoin pricing has always been one of the hottest topics of discussion within the crypto world. Especially when mixed with other issues such as the quality of BTC as an asset store of value, and its correlation with the S&P 500 index. However, what for many analysts is a bad sign, such as the relationship between this index and the cryptomoney. It makes the analyst known as PlanB, comment in today’s Tweet that Bitcoin could reach $190,000:
Correlation between Bitcoin’s price and the S&P 500 reaches record levels
Bitcoin on the way to a new bullish rally
In recent years, one of the most important debates within the crypto world, has been whether Bitcoin can be considered an asset of value. With much of the community arguing that cryptomoney should be considered the „digital gold“ of the 21st century. Thanks to the lack of correlation between its price and the performance of global financial markets.
Thus, as advocates of Bitcoin as a refuge of value argue, investors can place their capital in BTC
Knowing that, in times of uncertainty or crisis in the markets, the price of cryptomoney will be maintained or even increased.
However, the Coronavirus crisis has shaken this theory. By demonstrating that there is a high degree of correlation between Bitcoin Future and the performance of indices such as the S&P 500. This is the reason why, at the beginning of the pandemic, the price of BTC collapsed along with the New York Stock Exchange. This, however, would not be a problem for analysts like the twitter known as PlanB:
„S&P $4000!! That means BTC = 4000^8.7*e^-60 = $190K“
With this message sent through its Twitter account, PlanB would emphasize the fact that the S&P 500 index, and therefore the financial market, is reaching record figures. This means that, if Bitcoin is a correlated asset, its price should also rise substantially soon. According to the analyst’s calculations, it could reach the figure of $190,000 per BTC.