Benjamin Cowen Looks Into Bitcoin Value Against The Stock Market

According to a top crypto market analyst and trader, Benjamin Cowen, Bitcoin (BTC) has likely already bottomed out, although many analysts would call the current price action bearish.

In a recent video, Cowen shared with the 678K subscribers on his YouTube channel that looking Bitcoin value in assets other than the USD can sometimes give good indicators.

Cowen looks at BTC priced in the stock market using the S&P 500, and says that Bitcoin has already hit critical support against the S&P 500.

“But if you look at Bitcoin divided by the stock market, we’re actually testing those levels. We’re actually testing the levels that we tested back in September, already. So, some people are sitting here waiting to say that ‘Okay we have to go back down to this level,’ and you could be right. It’s certainly possible to go back to $40,000. It’s certainly possible to go back to $42,000.

Anything is possible with investing in general. All models are wrong. Some are useful, I have no idea what’s going to happen tomorrow. Bitcoin could go to $40,000 tomorrow, and it could go to $55,000 tomorrow. What’s interesting in this analysis is that we’re actually testing those levels that we were.”

The analyst notes that when the stock market is divided by the M2 money supply, it seems to move sideways rather than in a straight upward line. According to the same logic, Bitcoin would be appear as undervalued and due for another uptrend, says Cowen.

“With all this money printing and inflation, and the idea that maybe stocks aren’t necessarily worth more because they’re fundamental more but maybe the US dollar is worth less, could this be a measure of some type of inflation and how we can then maybe relate it to Bitcoin and say… based on this, Bitcoin is testing where we were back in September.”