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Here’s why Jamie Dimon’s economic outlook could be bullish for Bitcoin

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The worldwide financial system is at the moment in uncharted waters, and traders throughout all markets and property – together with shares, Bitcoin, gold, and extra – are all carefully watching to see how the financial system traits as most international locations start easing their pandemic-related lockdowns.

The person standing on the helm of one of many world’s largest banks believes that the financial restoration seen within the years forward may very well be pretty speedy.

This might have main implications for Bitcoin’s macro pattern, because the cryptocurrency nonetheless stays extremely correlated to the US benchmark indices regardless of it lately being deemed as a “secure haven” asset by traders.

Jamie Dimon: the US might see a “pretty speedy restoration”

The worldwide markets have seen immense turbulence in latest occasions, with most markets incurring intense losses in early-March earlier than posting a notable rebound within the time since.

This turbulence led Bitcoin to say no to lows of $3,800 earlier than garnering huge shopping for stress that in the end led it as much as highs of $10,500.

The S&P 500 and different indices recovered in tandem, though the benchmark cryptocurrency’s restoration was much more drastic than that seen by all different property.

Jamie Dimon – the CEO of JPMorgan – believes that the continuing restoration within the inventory market could also be justified, as he notes that the worldwide financial system might recuperate quickly as international lockdowns start easing.

“You possibly can see a reasonably speedy restoration… I believe that’s received a great probability.”

He additional went on the justify this notion by explaining that the federal government and Federal Reserve’s immense involvement within the financial system over the previous few months has performed an integral function in thwarting a long-lasting downturn.

“The federal government has been very responsive, the Federal Reserve has been very responsive. Giant corporations have an enormous wherewithal, hopefully we’ll hold the small ones alive lengthy sufficient that the majority of them get again into enterprise,” he mentioned.

Right here’s why Dimon’s outlook is bullish for Bitcoin

CryptoSlate reported yesterday that the S&P 500 and BTC have remained extremely correlated regardless of bourgeoning narratives relating to the 2 property being decoupled.

An overlay of the 2 property’ charts present that they’ve been seeing strikingly comparable value motion in latest occasions, regardless of Bitcoin’s restoration from its March lows being extra magnified than that seen by the S&P 500.

Bitcoin vs S&P500
Knowledge by way of Skew

Assuming that this correlation persists within the near-term – and there don’t seem like any clear catalysts that might break it in the mean time – it’s doable that this swift financial rebound will create an upwards tailwind that pulls Bitcoin greater.

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