Bitcoin (BTC) Shakes Off September Bearish Fears...Wall Street Cheers Big Tech Rally

▲ Bitcoin (BTC)/ChatGPT generated image

In the latter half of September, often cited as a seasonally bearish period, the New York stock market and the virtual asset market are both experiencing a rally, dispelling market concerns. As Bitcoin (BTC) touched the $86,000 mark, its highest since January, strong buying interest centered on large technology stocks has revived.

CNBC, an American economic news channel, reported on September 22 (local time) that many macroeconomic headwinds that had suppressed the market have largely dissipated. Anastasia Amoroso, Chief Investment Strategist at Partners Group, commented, "Soaring oil prices have come down from their peak, and the momentum that was dampened by concerns over artificial intelligence (AI) safety has been revived by Meta Platforms (META)'s new achievements." Amoroso further observed, "Despite interest rate hikes by the Federal Reserve (Fed) and the Bank of Japan (BOJ), the real economy has proven robust," adding, "As the price-to-earnings ratio for S&P 500 companies has decreased from 23x to 19x, creating attractive valuations, the index could reach the 8,000 level by year-end."

The Magnificent 7, referring to seven large-cap big tech companies, reclaiming leadership has also fueled the market's uptrend. Ryan Detrick, Chief Market Strategist at Carson Group, analyzed, "The Magnificent 7 broke intraday all-time highs, taking back the baton of the rally." Detrick emphasized, "The S&P 500 index has shown strong downside rigidity, with no decline of more than 1% for 37 days," adding, "The Fed's policy stance has been confirmed to be more dovish than market expectations, and Bitcoin's upward breakout is also a positive signal for risk assets across the board."

From a technical analysis perspective, the stock market's long-term uptrend remains solid. Katie Stockton, founder of Fairlead Strategies, explained, "After a short-term oversold phase, the rebound momentum has picked up, proving that the uptrend has not been damaged." Stockton diagnosed, "The S&P 500 index strongly defended the 7,618 support level," adding, "The formation of an upward gap in the semiconductor sector, coupled with large mega-cap stocks breaking new highs, has secured additional upward momentum for the index."

Experts anticipate that the market in the latter half of September, historically known for high volatility, will show a different trend than in the past. With the Fed's uncertainties cleared, solid corporate earnings and a rotation of funds centered on large technology stocks are continuing, laying the groundwork for a Q4 rally.

[Article Key Summary]

-Bitcoin (BTC) recovered $86,000, and the portfolio of seven large technology companies hit an all-time high.

-Partners Group suggested the possibility of the S&P 500 index reaching the 8,000 level, based on P/E ratio adjustments and improved earnings.

-With the S&P 500 index securing support at 7,618, semiconductor and large mega-cap stocks are driving the rally.

*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.*