Bitcoin drifts up some more as stocks see best two-day rally in almost two years

Bitcoin (BTC-USD) extended its modest relief rally in Tuesday afternoon trading as equities undergo their best-two day surge since November 2020 as markets reward worsening economic data. The world's largest cryptocurrency by market cap (BTC-USD) is flirting with its key technical level of $20K, rising 2.2% to $20.06K at 2:17 p.m. ET. Ethereum (ETH-USD), the largest altcoin by market cap, gained 2.4% to $1.35K. It comes at no surprise that major cryptos and stocks are rising in tandem given their exceptionally strong price correlation over the past year. All three major stock indices jumped at least 2% after a huge rebound from oversold levels occurred Monday, with Dow Jones (DJI) +2.4%, S&P 500 (SP500) +2.7% and Nasdaq (COMP.IND) +3%. Bearing in mind that the stock market (SP500) is still off over 21% year-to-date (bear market territory), "the best days for equities happen in bear markets," said David Rosenberg, the founder and president of Rosenberg Research & Associates, adding that Monday's jump was the 26th 2%+ session this year. That implies that bitcoin's (BTC-USD) recent ascend, albeit more modest than stocks, could run out of steam and continue to slump. "The fact that the U.S. stock market rallied yesterday after weaker manufacturing data showed that the market is currently fearing persistently high inflation over the danger of a recession," said GlobalBlock analyst Marcus Sotiriou. "This means that a wider r...