Bitcoin ($BTC) analyst Plan B said he sees a large valuation discrepancy between Bitcoin and traditional assets, suggesting that this discrepancy could be the beginning of a sharp rise. In a recent post on X, Plan B claimed that Bitcoin is trading far below its historical relationship with both stocks and gold. He noted that Bitcoin’s current price, around $87,500, is well below its long-term regression trend when compared to the S&P 500 and gold, but he said such a setup has only appeared once in the past.
Bitcoin ($87,500) is currently (pink dot) far removed from its historical correlation with stocks ($6,900) and gold ($4,500). This happened previously when BTC fell below $1,000, resulting in a 10x pump. However, it is also possible that the correlation breaks down, and in that case it is different this time. Time will tell. pic.twitter.com/3JwLkgUydB
— PlanB (@100trillionUSD) December 27, 2025
PlanB links current Bitcoin divergence to stock-to-flow scarcity dynamics
According to PlanB, a similar divergence occurred when Bitcoin was trading below $1,000, just before Bitcoin rose about 10x. While he cautioned that correlations can break down and results are by no means guaranteed, he stressed that the current position stands out from a historical perspective.
PlanB, best known for creating the Stock-to-Flow (S2F) model, views Bitcoin as a scarce asset whose value is driven by supply dynamics similar to commodities such as gold. Although this model has faced criticism in recent years for missing cycle peaks, it remains widely adopted across the crypto market.
PlanB claims Bitcoin was not forever uncorrelated
In response to criticism that Bitcoin should remain uncorrelated with traditional markets, Plan B reiterated the long-held view that assets with substantial scarcity tend to rally all at once during periods of currency weakness. He added that Bitcoin’s correlations are by no means static and have changed throughout different market cycles.
Bitcoin has been trading sideways in recent weeks after its October peak, leading to debate over whether Bitcoin is consolidating before going higher or entering an extended cooling phase. For now, PlanB maintains that the current divergence is significant and deserves close attention. In the end, he summed up, only time will tell what will happen.
