Wall Street strategists say markets have cleared several of September’s biggest fears. Bitcoin (BTC) jumped more than 6% to trade near $86,600 as risk appetite returned.

Anastasia Amoroso is chief investment strategist at Partners Group. She told CNBC’s Closing Bell that fears over oil, artificial intelligence (AI) safety and higher rates have eased. That has cleared room for stocks to climb further into year end.

Fed and BOJ Hikes Fail to Rattle Markets

The Federal Reserve and the Bank of Japan (BOJ) both raised interest rates this month. The move initially unsettled investors bracing for tighter policy.

Ryan Detrick, chief market strategist at Carson Group, said the Fed’s tone came across as more dovish than expected. That has helped extend a stretch in which the S&P 500 has gone 37 days without a 1% decline.

That steadiness echoes a market’s resilience pattern strategists have flagged recently. Investor caution, in that view, has acted as fuel rather than a warning sign.

Katie Stockton, founder of Fairlead Strategies, said mega-cap technology and semiconductor stocks are again leading the advance. She called that rotation necessary for the broader uptrend to hold.

Will the Bitcoin Rally Follow Stocks Higher?

The optimism raises a pointed question for crypto investors. Will Bitcoin ride the same wave if equities keep climbing into the fourth quarter? Or will capital rotate back toward traditional assets instead?

Bitcoin’s history offers a mixed answer. The asset has previously sat out stock rallies entirely, breaking from its usual role as a high-beta tech proxy.

For now, Bitcoin’s price move over the past day tells a different story. Traders appear to be reading a more dovish Fed as bullish for both markets at once. That reading treats it as a tailwind, not a reason to rotate away from crypto.

Whether that alignment holds may depend on earnings and Fed commentary in the coming weeks. It will also hinge on whether the Bitcoin rally can keep pace with equities into the fourth quarter.

Source: BeInCrypto