{"id":20132,"date":"2023-06-08T16:47:19","date_gmt":"2023-06-08T20:47:19","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/crypto\/bitcoin-now-undervalued-vs-sp-500-according-to-this-metric\/"},"modified":"2023-06-08T16:47:21","modified_gmt":"2023-06-08T20:47:21","slug":"bitcoin-now-undervalued-vs-sp-500-according-to-this-metric","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=20132","title":{"rendered":"Bitcoin Now Undervalued vs S&P 500, According to This Metric"},"content":{"rendered":"
\n

Bitcoin (BTC) is now undervalued versus the S&P 500.<\/p>\n

That\u2019s according to a metric that runs an Ordinary Least Squares (OLS) regression of the relationship between bitcoin and S&P 500 over the last 200 days to estimate of fair value for the Bitcoin price based on the current S&P 500 price.<\/p>\n

This methodology (an OLS regression of the Bitcoin and S&P 500 prices over the last 200 days) comes up with a fair value of 27,550 for BTC.<\/p>\n

At its current price almost exactly $1,000 lower in the mid-$26,000s, bitcoin is currently undervalued versus this estimate of fair value by around 3.7%.<\/p>\n

That\u2019s the biggest undervaluation bitcoin has seen versus its 200-day OLS regression-derived fair value to the S&P 500 since mid-February.<\/p>\n

Bitcoin and US stocks, particularly growth stocks, have historically had a close trading correlation, with analysts viewing both as speculative risk assets that are sensitive to shifts in interest rates.<\/p>\n

US equity markets have been led higher in recent weeks by a surge in big tech stocks amid swelling optimism about the possibility that fast-evolving artificial intelligence (AI) technology will deliver a substantial boost to productivity and profits.<\/p>\n

Thanks to the historic correlation between bitcoin and stocks, the more the latter rallies while the former stagnates, the more scope there is for a \u201ccatch-up\u201d rally in bitcoin.<\/p>\n

Bitcoin was last changing hands close to 15% lower versus yearly highs hit in the $31,000s in April, while the S&P 500 was on Thursday probing yearly highs just under 4,300.<\/p>\n

Weakening Correlation Limits Prospect of Bitcoin Catch-up Rally<\/strong><\/h2>\n

However, the argument for a bitcoin catch-up rally to the surging equity market isn\u2019t quite as strong as it was a few months ago.<\/p>\n

That\u2019s because, while the correlation between the S&P 500 and bitcoin price is still positive, it has weakened substantially over the last 12 months.<\/p>\n

This time last year, the 60-day Pearson correlation between Bitcoin and the S&P 500 was above 0.6, as per data presented by CoinMetrics.io.<\/p>\n

Meanwhile, as of the 6th<\/sup> of June, it was only around 0.14.<\/p>\n

Much of the weakening in the two asset classes\u2019 correlation happened in March, when a mini-bank crisis rocked sentiment in the equity sector, but injected a dose of safe-haven demand into bitcoin.<\/p>\n

March\u2019s price action was a sign that investors were finally starting to view bitcoin how its long-time proponents have always wanted it to be viewed \u2013 as a decentralized and secure alternative to the current fiat-based monetary system.<\/p>\n

Indeed, while bitcoin\u2019s correlation to the S&P 500 has been weakening as of late as investors treat the asset more like a hard-money safe-haven like gold, bitcoin\u2019s correlation to gold has been on the rise.<\/p>\n

Bitcoin\u2019s 60-day Pearson correlation to Paxful\u2019s tokenized version of gold (PAXG), which tracks the spot gold price closely, was last around 0.22, having recent hit highs for the year above 0.3.<\/p>\n<\/p><\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Bitcoin (BTC) is now undervalued versus the S&P 500. That\u2019s according to a metric that runs an Ordinary Least Squares (OLS) regression of the relationship between bitcoin and S&P 500 over the last 200 days to estimate of fair value for the Bitcoin price based on the current S&P 500 price. This methodology (an OLS […]<\/p>\n","protected":false},"author":1,"featured_media":20133,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[243],"tags":[83],"class_list":["post-20132","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto","tag-featured"],"yoast_head":"\nBitcoin Now Undervalued vs S&P 500, According to This Metric | iFintechWorld<\/title>\n<meta name=\"description\" content=\"Bitcoin (BTC) is now undervalued versus the S&P 500.That\u2019s according to a metric that runs an Ordinary Least Squares (OLS) regression of the\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ifintechworld.com\/?p=20132\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Bitcoin Now Undervalued vs S&P 500, According to This Metric | iFintechWorld\" \/>\n<meta property=\"og:description\" content=\"Bitcoin (BTC) is now undervalued versus the S&P 500.That\u2019s according to a metric that runs an Ordinary Least Squares (OLS) regression of the\" \/>\n<meta property=\"og:url\" content=\"https:\/\/ifintechworld.com\/?p=20132\" \/>\n<meta property=\"og:site_name\" content=\"iFintechWorld\" \/>\n<meta property=\"article:published_time\" content=\"2023-06-08T20:47:19+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-06-08T20:47:21+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/06\/btc-25.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"776\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"News Room\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"News Room\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/ifintechworld.com\/?p=20132#article\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=20132\"},\"author\":{\"name\":\"News Room\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\"},\"headline\":\"Bitcoin Now Undervalued vs S&P 500, According to This Metric\",\"datePublished\":\"2023-06-08T20:47:19+00:00\",\"dateModified\":\"2023-06-08T20:47:21+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=20132\"},\"wordCount\":499,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"keywords\":[\"Featured\"],\"articleSection\":[\"Crypto\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/ifintechworld.com\/?p=20132#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/ifintechworld.com\/?p=20132\",\"url\":\"https:\/\/ifintechworld.com\/?p=20132\",\"name\":\"Bitcoin Now Undervalued vs S&P 500, According to This Metric | iFintechWorld\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/#website\"},\"datePublished\":\"2023-06-08T20:47:19+00:00\",\"dateModified\":\"2023-06-08T20:47:21+00:00\",\"description\":\"Bitcoin (BTC) is now undervalued versus the S&P 500.That\u2019s according to a metric that runs an Ordinary Least Squares (OLS) regression of the\",\"breadcrumb\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=20132#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/ifintechworld.com\/?p=20132\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/ifintechworld.com\/?p=20132#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/ifintechworld.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Bitcoin Now Undervalued vs S&P 500, According to This Metric\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/ifintechworld.com\/#website\",\"url\":\"https:\/\/ifintechworld.com\/\",\"name\":\"Repay Down\",\"description\":\"Latest Personal Finance News, Tips and Updates\",\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/ifintechworld.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/ifintechworld.com\/#organization\",\"name\":\"Repay Down\",\"url\":\"https:\/\/ifintechworld.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"width\":558,\"height\":90,\"caption\":\"Repay Down\"},\"image\":{\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\",\"name\":\"News Room\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"caption\":\"News Room\"},\"sameAs\":[\"https:\/\/ifintechworld.com\"],\"url\":\"https:\/\/ifintechworld.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Bitcoin Now Undervalued vs S&P 500, According to This Metric | iFintechWorld","description":"Bitcoin (BTC) is now undervalued versus the S&P 500.That\u2019s according to a metric that runs an Ordinary Least Squares (OLS) regression of the","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/ifintechworld.com\/?p=20132","og_locale":"en_US","og_type":"article","og_title":"Bitcoin Now Undervalued vs S&P 500, According to This Metric | iFintechWorld","og_description":"Bitcoin (BTC) is now undervalued versus the S&P 500.That\u2019s according to a metric that runs an Ordinary Least Squares (OLS) regression of the","og_url":"https:\/\/ifintechworld.com\/?p=20132","og_site_name":"iFintechWorld","article_published_time":"2023-06-08T20:47:19+00:00","article_modified_time":"2023-06-08T20:47:21+00:00","og_image":[{"width":1200,"height":776,"url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/06\/btc-25.jpeg","type":"image\/jpeg"}],"author":"News Room","twitter_card":"summary_large_image","twitter_misc":{"Written by":"News Room","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/ifintechworld.com\/?p=20132#article","isPartOf":{"@id":"https:\/\/ifintechworld.com\/?p=20132"},"author":{"name":"News Room","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61"},"headline":"Bitcoin Now Undervalued vs S&P 500, According to This Metric","datePublished":"2023-06-08T20:47:19+00:00","dateModified":"2023-06-08T20:47:21+00:00","mainEntityOfPage":{"@id":"https:\/\/ifintechworld.com\/?p=20132"},"wordCount":499,"commentCount":0,"publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"keywords":["Featured"],"articleSection":["Crypto"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/ifintechworld.com\/?p=20132#respond"]}]},{"@type":"WebPage","@id":"https:\/\/ifintechworld.com\/?p=20132","url":"https:\/\/ifintechworld.com\/?p=20132","name":"Bitcoin Now Undervalued vs S&P 500, According to This Metric | iFintechWorld","isPartOf":{"@id":"https:\/\/ifintechworld.com\/#website"},"datePublished":"2023-06-08T20:47:19+00:00","dateModified":"2023-06-08T20:47:21+00:00","description":"Bitcoin (BTC) is now undervalued versus the S&P 500.That\u2019s according to a metric that runs an Ordinary Least Squares (OLS) regression of the","breadcrumb":{"@id":"https:\/\/ifintechworld.com\/?p=20132#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/ifintechworld.com\/?p=20132"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/ifintechworld.com\/?p=20132#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/ifintechworld.com\/"},{"@type":"ListItem","position":2,"name":"Bitcoin Now Undervalued vs S&P 500, According to This Metric"}]},{"@type":"WebSite","@id":"https:\/\/ifintechworld.com\/#website","url":"https:\/\/ifintechworld.com\/","name":"Repay Down","description":"Latest Personal Finance News, Tips and Updates","publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/ifintechworld.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/ifintechworld.com\/#organization","name":"Repay Down","url":"https:\/\/ifintechworld.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","width":558,"height":90,"caption":"Repay Down"},"image":{"@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61","name":"News Room","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","caption":"News Room"},"sameAs":["https:\/\/ifintechworld.com"],"url":"https:\/\/ifintechworld.com\/?author=1"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/20132","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=20132"}],"version-history":[{"count":1,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/20132\/revisions"}],"predecessor-version":[{"id":20134,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/20132\/revisions\/20134"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/media\/20133"}],"wp:attachment":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=20132"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=20132"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=20132"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}