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

Share:

Share on facebook
Share on twitter
Share on linkedin
Share on pinterest
Share on reddit
Share on telegram
Share on tumblr
Share on vk
Share on whatsapp
Share on email
Share on digg
Share on mix
Which way will BTC go?

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.

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. Read More

Ledger Nano X - The secure hardware wallet

Share:

Share on facebook
Share on twitter
Share on linkedin
Share on pinterest
Share on reddit
Share on telegram
Share on tumblr
Share on vk
Share on whatsapp
Share on email
Share on digg
Share on mix
Bitcoin(BTC)
$35,311.00(24H Vol)
$21,276,911,863.00
7D Chart