Wall Street analysts have indicated growing confidence that the recent market correction is nearing its end, as the S&P 500 recovers and corporate earnings continue to beat expectations. However, Bitcoin remains rangebound, facing repeated selling each time it approaches the $70,000 threshold.
Morgan Stanley and JPMorgan highlight market turnaround signs
Morgan Stanley strategist Michael Wilson commented that the S&P 500’s rebound from its recent lows has found key technical support, diminishing fears that the selloff would deepen. He pointed to a robust earnings season, with profits currently up 15% and seen rising above 20% on a forward-looking basis, as the foundation for further gains in equities.
Wilson’s team has advised investors to buy market dips, prioritizing cyclical and high-quality growth stocks and reducing allocations in the energy sector, which appears to have lost momentum following its sharp run earlier this year.
JPMorgan strategist Mislav Matejka also suggested that pullbacks present buying opportunities, forecasting a possible V-shaped recovery in stock markets over the next three to twelve months. He emphasized that investor sentiment had turned overly negative and that new inflows could help stabilize risk assets.
JPMorgan expects stronger relative performance from international markets, smaller companies, value stocks, and emerging economies, seeing global growth on a firmer path in coming quarters.
Michael Wilson pointed out to clients that, “with earnings surprising to the upside and major indices holding key support, buying weakness remains our preferred strategy in the current environment.”
Bitcoin lingers below its peak amid heavy selling
Bitcoin has struggled to gain momentum beyond $72,000, despite renewed optimism in equity markets. Blockchain analytics provider Glassnode identified significant profit-taking above the $70,000 mark, with hourly outflows from investors exceeding $20 million during recent upswings.
The world’s largest cryptocurrency briefly reached nearly $74,000 over the weekend before sliding back below $71,000. The move mirrored rising oil prices and U.S. stock index futures as geopolitical tensions escalated following failed U.S.-Iran negotiations and a newly announced blockade of the Strait of Hormuz by the U.S. government and military.
Behavior among Bitcoin holders, rather than technical chart resistance, continues to suppress further gains. Many investors have used rallies as exit opportunities, keeping Bitcoin trading within a defined range as these profit-taking waves cap advances. Until these holders exhaust their selling, it is expected that Bitcoin’s ability to hold above $70,000 will remain limited.
In contrast to other corporates trimming digital asset exposure, software intelligence firm Strategy has continued to increase its Bitcoin reserves. Founded by Michael Saylor, the company is known for its aggressive accumulation policy. Earlier today, Strategy bought 13,927 BTC with $1 billion raised from its at-the-market stock offering, pushing its total holdings to 780,897 BTC.
Strategy remains the leading institutional buyer of Bitcoin, diverging from a market trend where most firms have either paused or reduced their exposure in the current environment.
