Traders watch bitcoin for clues about high-flying stock market

Traders work on the floor of the New York Stock Exchange.

Traders are looking closely at bitcoin and other speculative investments like Tesla for signs of exuberance that may indicate where the stock market could go next.

The cryptocurrency, which briefly topped $40,000 apiece last week, has become a poster child for the level of animal spirits in the financial markets. The same goes for Tesla, which just came off its record 11-day winning streak after a sevenfold rally in 2020. A number of investors and traders flagged that the broader stock market started to move in tandem with these two feverish assets in the past few days.