Bitcoin undervalued compared to S&P 500, says metric.
The text describes a metric that uses an Ordinary Least Squares (OLS) regression to estimate the fair value of Bitcoin (BTC) based on its relationship with the S&P 500 over the last 200 days. According to this metric, BTC is currently undervalued by around 3.7% compared to its estimated fair value of 27,550. The text also notes that BTC and US stocks, particularly growth stocks, have historically had a close trading correlation. However, the correlation between BTC and the S&P 500 has weakened over the last 12 months, while BTC’s correlation to gold has been on the rise. Despite this, there is still potential for a “catch-up” rally in BTC if US stocks continue to surge.
We will continue to update Phone&Auto; if you have any questions or suggestions, please contact us!
Was this article helpful?
93 out of 132 found this helpful
Related articles
- Bitcoin rebounded against crowd expectations, giving a win to the bitcoin contrarians, says Santiment.
- Bitcoin volatility rises, bulls may win in the short-term.
- Bitcoin halving is approaching, only the most efficient miners will survive.
- Arthur Hayes is still optimistic about Bitcoin (BTC).
- Bitcoin mining difficulty hits all-time high of over 50 trillion hashes.
- Kraken resolves withdrawal delays caused by gateway issues.
- 241 MW Bitcoin mining project planned in El Salvador using volcano energy.