Goldman Sachs Predicts an Increase in the S&P 500 Index: How Will Bitcoin React?

In March, Bitcoin collapsed to an annual low; on some trading floors, the coin tested values ​​of $3,700. Since then, the cost of BTC has added about 100%, and now Bitcoin is kept in the region of $6800.

Many analysts systematically draw attention to the increasing correlation between the price of Bitcoin and US stock indicators. Recently, the interdependence of the first cryptocurrency and the American index S&P 500 reached a two-year maximum.

Credit: Investing.com

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This indicator of business activity began to grow last week. Over the past seven days, the S&P 500 jumped 25% — this is the largest weekly growth indicator since 1974.

Goldman Sachs investment bank strategists published a study earlier this week that predicted that by the end of 2020 the S&P 500 would exceed 3,000 points. The last session in the stock market ended with an increase in the indicator to 2761 points.

Analysts concluded that the US stock market felt the bottom in mid-March. So far, economic data remains weak and a take-off of business activity is unlikely.

However, as the situation improves and thanks to incentive measures by the US authorities, capital inflows to high-tech sectors of the economy (including the crypto sphere) will increase again. This trend will certainly have a positive impact on the position of Bitcoin as a key tool in the cryptocurrency industry.

Author: Marko Vidrih

Featured image credit: CNBC