NewsBTC
No Result
View All Result
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Bitcoin News
No Result
View All Result
Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident

Bitcoin Risks Breaking $9K as JP Morgan Warns $170B Stock Market Sell-off

Yashu Gola
Yashu Gola
1 year ago
3 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

  • Bitcoin price risks breaking to the downside as strategists warn of a correction in the U.S. stocks.
  • Analysts at JP Morgan & Chase predicted that pensions funds would most likely dump $170 billion worth of their equity positions at the end of the second quarter.
  • It would leave Bitcoin under similar bearish spell owing to its growing positive correlation with the S&P 500 index.

Bitcoin may witness sharp downside moves heading into the third quarter of 2020.

The bearish sentiment emerges from the risks of a massive capital shift from the stock market to safer bonds.  Analysts at JP Morgan said in a note published last week that they expect pension funds to dump about $175 billion worth of equities as a part of their quarterly portfolio rebalancing strategy.

Scaling Back

Pension Funds aims to maintain a diversified portfolio of stocks, bonds, and other assets. They tend to restructure their holdings at the end of each quarter. Nevertheless, the March 2020 sell-off led both bonds and stocks lower.

The S&P 500, the Dow Jones, and the Nasdaq Composite indices logged an impressive recovery rally from their March 23 nadirs. On the other hand, the Federal Reserve’s decision to cut interest rates to near-zero made sent bonds yields lower, making them an unattractive safe-haven.

JP Morgan analysts estimated that pensions funds increased their exposure in the stock market during its euphoric uptrend between March and June. It is now possible for them to scale back their exposure as the second quarter ends.

Trouble for Bitcoin

The question is whether or not a sell-off in the stock market would hurt Bitcoin. The latest data favors a bearish bias.

Bitcoin since March has moved in tandem with the S&P 500. Moreover, its positive correlation with the U.S. benchmark has grown higher ahead of the second quarter’s close. It indicates that the cryptocurrency would most likely tail the S&P 500, even towards its losses.

bitcoin, btcusd, xbtusd, btcusdt, cryptocurrency, spx, s&p 500, us index, coronavirus, covid19

Bitcoin price chart showing its correlation with the S&P 500. Source: TradingView.com

As S&P 500 slips owing to quarter-end rebalancing or other reasons, it could lead Bitcoin to retest its support level near $9,000. If the U.S. index extends its breakdown further – especially if investors remain cautious about the resurgence of COVID infections – then bitcoin could, too, extend its fall towards $8,600.

Prominent cryptocurrency analyst Scott Melker believes otherwise. In a statement made on Tuesday, he called Bitcoin an uncorrelated asset. Moreover, he noted that traders should focus more on the cryptocurrency’s negative correlation with the U.S. dollar, instead of the S&P 500.

“Historically, if looking to trade correlation, Bitcoin’s inverse correlation with the dollar ($DXY) is far more compelling than a temporary correlation with SPX,” he explained.

The U.S. dollar index was trading 2.20 percent higher from its June 10 lows.

Tweet123Share204ShareSend
Yashu Gola
Yashu Gola

Yashu Gola

Yashu Gola is a Mumbai-based finance journalist. He is profoundly active in the bitcoin space since 2014 – and has contributed to several cryptocurrency media outlets, including NewsBTC, FxDailyReport, Bitcoinist, and CCN.

Read more

Academically, Yashu holds a bachelor's in information technology, with majors in data structures and C++ programming language. He has also won the 'Atulya Award' for his efforts towards raising $100,000 for an India-based farming project.

Close

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Related News

比特幣ETF年化收益超越標普500 7月最值得買入預售項目錯過升10倍肯定後悔 

在2025年夏季的市場震盪中,一則來自貝萊德(BlackRock)的數據悄然顛覆了資本市場長期以來的認知。根據彭博社報導,貝萊德旗下的實物比特幣ETF,iShares Bitcoin Trust(IB...

Kelvin Lee 3 hours ago
Ethereum at Risk? Whale Activity and On-Chain Signals Hint at Further Correction

Ethereum Wave Count Predicts Price Crash To $1,800 — But $6,000 Is Still In Play

Ethereum is still struggling below $3,000 despite the Bitcoin price sitting close to all-time highs. At the current levels, Ethereum...

Scott Matherson 4 hours ago
BTC, Bitcoin

Bitcoin Near Historic Weekly Close Despite Drop – Analyst Warns Of Volatile Weekend

As the market sees a Friday retrace, Bitcoin (BTC) is attempting to reclaim a crucial area as support. An analyst...

Rubmar Garcia 6 hours ago
Load More

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Related News

No Room For Bears: Bitcoin Bullish MACD And Monthly Close Fuel Bullish Outlook

No Room For Bears: Bitcoin Bullish MACD, Monthly Close Fuel Bullish Outlook

Sebastian Villafuerte 7 minutes ago
Chainlink price

Chainlink Price Continues To Struggle Below $15 — Levels To Watch

Opeyemi Sule 1 hour ago
Solana Tests Rising Channel Support – Breakdown Could Send Price To $128.50 Level

Solana Tests Rising Channel Support – Breakdown Could Send Price To $128.50 Level

Sebastian Villafuerte 3 hours ago

Premium Sponsors

Press Releases

  • XRP Bulls Are Soaring — FINDMINING Rides the Wave to...

    4 hours ago
  • $AIN Expands to 7 DEXs as AI Network Activates Omnichain AI...

    4 hours ago
  • 仮想通プレセール注目:リップルが米銀行ライセンスを申請、機関投資家の関心が急上昇中

    ...

    21 hours ago
  • 仮想通貨おすすめ:話題の新トークンがプレセール開始直後に15万ドルを調達

    ...

    21 hours ago
  • 新しい仮想通貨:ソラナ系取引ボットが話題のプレセールで150万ドル調達、次の100倍候補か?

    ...

    22 hours ago

Newsletter

Be the first to get the latest important crypto news & events to your inbox.

  • This field is for validation purposes and should be left unchanged.

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Company

  • About Us
  • Advertising
  • Contact Us
  • Privacy Center

Social

© 2025 NewsBTC. All Rights Reserved.

  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play Games
  • Casinos
Advertise

© 2025 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.