JPMorgan, Morgan Stanley Predict V-Shape Rebound in S&P 500

Morgan Stanley on Monday said the S&P 500 correction is nearly over, turning cautiously bullish and claiming markets have largely priced in recent risks. JPMorgan also predicts a V-shape rebound. Will Bitcoin see a rebound towards $75K as it follows the US stock market and tech stocks rebound?

JPMorgan, Morgan Stanley Say S&P 500 Correction Is Nearly Over

Morgan Stanley’s strategist Michael Wilson signaled that the recent S&P 500 correction is nearing its end stages. The S&P 500 has rebounded almost 7% from lows and held key support.

Accelerating earnings are protecting the S&P 500 from deeper losses and masking a broader pullback in US equities due to the US-Iran war. The team is recommending investors to buy the dips.

JPMorgan Chase also suggests investors buy the recent market pullbacks. The banking giant argued that the conditions support another V-shaped recovery despite geopolitical risks.

Strategist Mislav Matejka noted that volatility would continue to persist. However, investing in risk assets amid bearish sentiment and oversold signals creates an opportunity for 3 to 12 months.

The bank also expects international stocks, emerging markets, small caps, and value to outperform, with inflows likely to resume. Meanwhile, the US CPI data also showed inflation rising amid rising oil prices, but markets are already pricing in the impact.

Will Bitcoin Follow the US Stock Market Rebound Again?

Bitcoin has been mirroring the US stock market, particularly tech stocks, over the last few months. BTC price jumped amid bullish reports from JPMorgan and Morgan Stanley. Trading currently at $71,168, with a 24-hour low and high of $70,540 and $71,452, respectively.

However, Israel’s Prime Minister Benjamin Netanyahu said the ceasefire with Iran “could end quickly.” This comes as Trump threatens the Strait of Hormuz blockade.

Analyst Rekt Capital said “Not much has changed over the past 30 days or so. Stablecoin Dominance could still decline which would continue to open up the possibility for Bitcoin to enjoy relief.”

Bitcoin in Monthly Timeframe Bitcoin in Monthly Timeframe
Bitcoin in Monthly Timeframe. Source: Rekt Capital

Analyst Ali Martinez predicts Bitcoin could see a recovery to $80,000 amid a clean 12-hour close above $72,000, with the triangle resolving to the upside. However, if Bitcoin breaks the lower support and drops below $67,000, the structure would break, triggering a deeper correction toward $59,000.

Also, notable on-chain analyst Willy Woo highlighted that capital flows into BTC flipped positive for first time since January. CoinShares data on digital asset inflows shows liquidity is rising again. Derivatives traders are leading the rebounding attempt. He also points out that “80k remains key test level.”

Source: https://coingape.com/jpmorgan-morgan-stanley-predict-v-shape-rebound-in-sp-500-will-bitcoin-follow/