The U.S. stock market has incurred some notable upwards momentum today, marking an extension of that which was first incurred yesterday. This has allowed Bitcoin to also post some notable gains, with the nascent crypto market continuing to closely track equities.
This stock market rebound isn’t showing signs of slowing down either, as the benchmark indices futures are all trading up slightly at the time of writing.
Although investors do appear to be gaining some confidence in the markets due to the highly anticipated multi-trillion-dollar stimulus bill that is in the pipeline, there’s one overlooked factor that may not currently be priced into the markets, and it could spell trouble for both stocks and crypto.
Related: The White House’s $6 trillion stimulus package is astronomically bullish for Bitcoin; here’s why
Crypto and equities climb higher as investors grow confident in an economic rebound
The stock market has been caught within a firm uptrend over the past two days, which first came about after bulls ardently defended the Dow from dipping below 18,000 points.
The defense of this level, coupled with the progress made in the U.S. Senate to pass a larger than anticipated stimulus bill, boosted investors’ confidence, which is clear while looking at the Dow’s climb past 21,000 today.
This rebound has created a tailwind that has also allowed the crypto market to recover from its recent lows, with Bitcoin rallying up towards $7,000 – marking a nearly 100 percent climb from its recent lows within the $3,000 region.
If the equities market is able to continue climbing higher, it is probable that the crypto market will do the same,