Cryptocurrency News

Will Bitcoin’s rally sustain? DXY, SPX, GC and WTI could have the answer

Federal Reserve Chairman Jerome Powell said in a question and answer session hosted by the Cato Institute on Sept. 8 that the central bank will continue to hike rates until inflation is under control. However, these comments did not rattle the markets as much as most would have anticipated, indicating that traders might have already factored in a 75 basis point rate hike in the Fed’s next meeting on Sept. 20-21.

Bitcoin has been strongly correlated with the S&P 500 and inversely correlated with the United States dollar index (DXY) for the past several weeks. With the DXY cooling off after hitting a two-decade high, risky assets have been attempting a recovery.

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Crypto market data daily view. Source: Coin360

U.S. equities markets are attempting to snap a three-week losing streak while Bitcoin (BTC) has soared above the psychological level at $21,000.

Does the rally in the equities and crypto markets indicate that the risk-on sentiment is back? Let’s analyze five asset classes to review their trends and determine where they might go in the next few days.