Bitcoin (BTC), September Fear Ends...Riding the S&P 500, Will it Fire a Celebratory Shot in Q4?

▲ Bitcoin (BTC)

As the New York stock market shakes off negative factors and returns to a bull market, market attention is focused on whether Bitcoin (BTC) can join the upward trajectory of traditional financial assets.

According to BeInCrypto on September 21 (local time), Wall Street strategists assessed that key fear factors that had suppressed the market in September have entered a phase of resolution. As risk asset preference sentiment revived, Bitcoin surged more than 6%, soaring to around $86,600. Anastasia Amoroso, Senior Investment Strategist at global investment firm Partners Group, appeared on CNBC and stated, "Concerns about oil prices, artificial intelligence (AI) safety, and prolonged high interest rates have eased," adding, "There is room for major stock indices to rise further by the end of the year."

Central banks' benchmark interest rate hikes also failed to dampen the market's resilience. Although the Federal Reserve (Fed) and the Bank of Japan (BOJ) raised benchmark interest rates this month, the market interpreted this as an accommodative signal. Ryan Detrick, Chief Market Strategist at Carson Group, explained, "The Fed's stance was interpreted as more dovish than expected," and "This is the backdrop for the S&P 500 index cruising for 37 consecutive days without falling more than 1%." The analysis suggests that investors' cautious attitude acted as an additional upward driving force rather than increasing market instability.

However, there are mixed views on whether Bitcoin can rise alongside the stock market rally if it continues into the fourth quarter. Bitcoin has shown momentum, rising 12% this month alone. However, in past bull markets, the correlation with tech stocks broke, and the cryptocurrency market was sometimes sidelined from the stock market rally. It is pointed out that if capital moves back to traditional assets such as stocks, the virtual asset market could lose its upward momentum.

In the short term, expectations for accommodative monetary policy are acting as a positive factor for both stocks and virtual assets. Traders are evaluating the Fed's accommodative signals not as a factor for capital outflow but as a strong tailwind for all risk assets. Future earnings reports from major companies and additional statements from Fed officials are expected to be key variables in determining the synchronization trend of the two markets.

[Article Key Summary]

-Bitcoin (BTC) rebounded to the $86,600 level as oil price and interest rate fears eased on Wall Street.

-Thanks to the Fed's dovish stance, the S&P 500 index has maintained a stable trend for 37 consecutive days.

-If the stock market rally continues into the fourth quarter, Bitcoin's ability to rise alongside it, or whether capital will flow to traditional assets, will be put to the test.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*