JPMorgan, Morgan Stanley Predict V-Shape Rebound in S&P 500 – Will Bitcoin Follow?

Varinder Singh
Varinder Singh

Varinder Singh

Independent Sr. Journalist
Expertise : Bitcoin, Crypto, Global Macro, DeFi, Blockchain, Web3, US Stocks, AI, Regulations and Lawsuits, & More
Varinder is a seasoned leader in the fintech and crypto media with over 12 years of experience, including over 6 years dedicated to blockchain, crypto, and Web3 developments. He is known for covering high-impact and quality news stories for publishers such as CoinGape, The Coin Republic, and The Crypto Times, while perfecting and training multiple journalists during his tenure. Being a Master of Technology degree holder, analytics thinker, and tech enthusiast, he has shared his knowledge of disruptive technologies in over 6000 news articles and papers.
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JPMorgan, Morgan Stanley Predict V-Shape Rebound in S&P 500 - Will Bitcoin Follow?

Highlights

  • Morgan Stanley says the S&P 500 correction is nearly over, sparking hopes of Bitcoin to follow suit.
  • JPMorgan predicts a V-shape recovery in US stock markets despite US-Iran war.
  • Analysts expect Bitcoin recovery to $80,000 amid bullish sentiment and rising liquidity.

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. 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.”

Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

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About Author
About Author
Varinder is a seasoned leader in the fintech and crypto media with over 12 years of experience, including over 6 years dedicated to blockchain, crypto, and Web3 developments. He is known for covering high-impact and quality news stories for publishers such as CoinGape, The Coin Republic, and The Crypto Times, while perfecting and training multiple journalists during his tenure. Being a Master of Technology degree holder, analytics thinker, and tech enthusiast, he has shared his knowledge of disruptive technologies in over 6000 news articles and papers.