UBS Downgrades US Stocks: Will Bitcoin Boom Or Bust?

UBS downgraded US stocks to neutral, citing unattractive valuations compared to global peers, risks from a weakening dollar, and policy turbulence, despite sustained earnings growth from AI adoption. This downgrade, coupled with inflation data causing risk aversion, led to a Bitcoin price dip below $65,500, tracking S&P 500 movements. Analysts suggest that if the upside for the S&P 500 proves limited, capital might rotate into Bitcoin, especially if major sovereign funds announce BTC reserves, similar to how Tesla's prior BTC purchase shifted sentiment. However, the article notes that the correlation between BTC and US stocks remains high for now, and institutional adoption announcements are key to a favorable sentiment shift.

(Source：Cointelegraph)