Bitcoin‘s value has been hovering around $52,000, with the U.S. stock markets, notably the S&P 500, reaching historic highs. The S&P 500 recently scaled the 5,000 peak, marking a 5.54% surge since the year’s outset, stirring a positive sentiment amongst traders.
Goldman Sachs Ups the Ante on S&P 500 Forecast
Goldman Sachs’ analysts, under the guidance of David Kostin, have upgraded the S&P 500 index’s year-end projection for 2024 to 5,200, up from their earlier prediction. This adjustment, amounting to a 2% increase from previous forecasts, is driven by anticipated growth in earnings.
Previously in November 2023, Kostin’s team estimated the index would reach 4,700 by the end of 2024. Their revised target of 5,200 reflects a more optimistic view. Echoing this sentiment, market experts like Tom Lee of Fundstrat and John Stoltzfus of Oppenheimer also convey a buoyant perspective on the index’s future.
Bitcoin’s Price Poised to Mirror S&P 500’s Trajectory
Bitcoin and the S&P 500 have historically shown a tandem movement, and with Bitcoin’s impressive rally in late 2023, its trajectory is aligning with that of the S&P 500. The Goldman Sachs revision hints that Bitcoin might also experience a similar upward shift.
Present derivative metrics signal further ascents for Bitcoin, with the crypto’s open interest reaching a three-year zenith of $22.5 billion on February 18th, reflecting a robust investor optimism. However, Bitcoin encounters a formidable challenge near the $53,200 mark, a critical resistance level that has been a loss point for many since December 2021. Surmounting this could catalyze a surge, potentially eyeing the $60,000 threshold once more.