Goldman Sachs Forecasts S&P 500 to Achieve 5,200 by 2024, in Line with Bitcoin’s Upward Trend
Bitcoin’s open interest reached $22.5 billion over the weekend, indicating strong interest and activity in the market and suggesting that traders are optimistic about future price increases. The rise in Bitcoin exchange-traded funds (ETFs) has played a significant role in this growing prominence, with around 75% of Bitcoin inflows coming from these newly launched ETFs. However, there are concerns that once trading for these ETFs concludes, it could have a negative impact on Bitcoin’s price.
Goldman Sachs recently raised its S&P 500 target by 10%, reflecting a bullish sentiment in traditional markets, as reported by Bloomberg. However, Bitcoin is facing technical resistance around $53,000 as it strives for $60,000. This resistance level has historically been a point where many investors choose to sell, which could delay Bitcoin’s upward movement. If Bitcoin manages to break through this level, it could gain momentum and approach $60,000 once again.
The close relationship between Bitcoin’s price and the S&P 500 is evident, indicating the close connection between the cryptocurrency market and traditional markets. Following Bitcoin’s rise, Goldman Sachs’ strategists, led by David Kostin, have revised their forecast for the S&P 500, predicting it to reach 5,200 by the end of 2024. This adjustment comes after the index surpassed the 5,000 milestone earlier this month.
According to Kostin, the main reason for this rise is higher profit estimates, which bodes well for the stock market’s performance. Goldman Sachs is now one of the most optimistic companies on Wall Street about the stock market’s future, with this new prediction indicating a 3.9% increase from the current closing price. Other analysts, such as Tom Lee of Fundstrat Global Advisors and John Stoltzfus of Oppenheimer Asset Management, also share a positive sentiment regarding the S&P 500’s performance by the end of the year.
Bitcoin’s recent price surge has coincided with a notable increase in open interest, signaling increased investor confidence in its upward trajectory. However, there is a significant resistance level around $53,200 that has historically proven challenging for Bitcoin to surpass. An analysis from IntoTheBlock reveals that over 530,000 addresses hold nearly 295,000 BTC purchased at the peak price of $53,256. Many of these investors have been holding onto their Bitcoin since December 2021, facing losses. As Bitcoin approaches its break-even price, there is a possibility that some investors may choose to sell, potentially putting downward pressure on its price.
Simultaneously, the increase in Bitcoin’s open interest indicates that larger investors are becoming more involved in the cryptocurrency market. While ETFs have brought more money into Bitcoin, there are concerns about their potential impact on its price. With more significant players entering the market, it is becoming increasingly challenging to predict Bitcoin’s future moves.
Bitcoin’s open interest is currently at historic highs, and the question remains whether the bullish momentum can push it to reach $60,000.