Will the Bitcoin rally last? DXY, SPX, GC and WTI may have the answer.

Federal Reserve Chairman Jerome Powell said during a question-and-answer session at the Cato Institute on September 8 that the central bank will keep inflation under control. However, these comments did not rattle the market as much as most expected, indicating that traders may be on the lookout for a 75 basis point hike at the Fed’s next meeting on September 20-21.

Bitcoin has been strongly correlated to the S&P 500 and inversely correlated to the US Dollar Index (DXY) for the past several weeks. As the DXY cools after reaching two-decade highs, riskier assets are scrambling to recover.

Daily View of Crypto Market Data. Source: Coin 360

US stock markets are trying to snap a three-week losing streak, and Bitcoin (BTC) has risen above the psychological level of $21,000.

Does the rally in equity and crypto markets indicate that risk sentiment is back? Let’s examine five asset classes to assess their trends and determine where they will go over the next few days.