Bitcoin price has always been one of the hottest topics in the crypto world. Especially when mixed with other issues such as the quality of BTC as an asset value reserve, 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 cryptocurrency . It makes the analyst known as PlanB comment on the Tweet of the day that Bitcoin could reach $ 190,000:
Bitcoin on the way to a new bull rally
In recent years, one of the most important debates within the crypto world has been whether Bitcoin can be considered an active store of value. With a good part of the community, arguing that cryptocurrency should be considered as 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 defenders of Bitcoin argue as a haven of value, investors can place their capital in BTC. Knowing that, facing times of uncertainty or crisis in the markets, the price of the cryptocurrency will remain or even increase.
However, the Coronavirus crisis has shaken this theory. By showing that there is a high degree of correlation between Bitcoin and the performance of indices such as the S&P 500. This is the reason why, at the start of the pandemic, the price of BTC collapsed along with the New York Stock Exchange. What, however, would not be a problem for analysts like the tweeter 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. Which means that if Bitcoin is a correlated asset, its price should also increase substantially soon. Being able to reach, according to the calculations made by the analyst, the figure of $ 190,000 per BTC.