Cryptocurrencies rallied on Friday with bitcoin (BTC) nearing the $60,000 level, buoyed by strong gains across the board on traditional markets.

Bitcoin tumbled some 1% to $57,600 earlier during the day after software company MicroStrategy announced the purchase of 18,300 BTC for $1.1 billion. The largest crypto quickly recovered the losses and rose sharply later in the session, up 2.2% over the past 24 hours at $59,700.

Ethereum’s ether (ETH) reclaimed the $2,400 level, up 2.7% during the same period. Crypto analytics firm IntoTheBlock noted that Ethereum’s revenues from fees rose nearly 60% in the past week as blockchain activity picked up.

The broad-market benchmark CoinDesk 20 Index advanced 2.5%, led by double-digit gains of Polygon’s native crypto (MATIC) as Binance added spot and perpetual trading of the recently upgraded POL token.

The price action happened as U.S. stocks climbed higher, with the S&P 500 less than 1% away from its July record high a few hours before the market close. Gold continued to break record highs, hitting $2,600 per ounce for the first time ever. A decline in the U.S. dollar against major currencies supported the rally across asset classes.

Read more: Bitcoin’s Dilemma: Follow Gold’s Market Beating Rally or Stick With Technology Stocks?

Bitcoin’s rally may have more fuel in the tank based on the asset’s daily cycles analysis, well-followed trader and analyst Bob Loukas noted. Cycles theory in technical analysis argues that prices move in waves and have certain periodicity between local peaks and troughs.

According to a chart shared on X, bitcoin likely found a local bottom below $53,000 on September 6 and is only on its 7th day in a fresh cycle. The previous daily cycle lasted over sixty days and topped on the 24th day, leaving plenty of time for BTC to make news highs before rolling over.

“These cycles have time left should remain strong into FOMC,” Loukas said.

Next week’s key event to watch will be Wednesday’s Federal Open Market Committee (FOMC) meeting, which will most certainly mark the Federal Reserve’s first interest rate cut since 2020. Observers are still divided about the size of the cut, with probabilities almost evenly split between a 25 basis point and a larger, 50 bps cut, according to CME FedWatch Tool.

Despite the prospect of looser monetary policy, which would in theory be beneficial to risk assets, lingering concerns of a forthcoming recession weigh on the market, crypto investment firm Ryze Labs said in a Friday report.

“The key variable here is the state of the U.S. economy,” the report said. “If it remains resilient and avoids a recession, risk assets are likely to continue their upward trajectory. If not, then we’re in for a bumpy ride,” the report added.