Bitcoin prognosis: News of the corona vaccine could affect the BTC price
Global equity markets are exploding today on news that a vaccine that could put an end to the ongoing pandemic has 90% effectiveness.
This news may signal that it will only be a matter of months before things return to normal – meaning reduced government spending and economic turmoil.
This is bad for safe-haven investments, as today’s news will send the price of gold plummeting.
Bitcoin has also experienced some downward momentum, although it is largely consolidating around the price at which it was traded in recent days.
If BTC is indeed a safe haven, traded more like gold than stocks, then this news could be a severe blow to its strength and Crowd Millionaire is still traded in the mid $15,000 region after a period of weakness in recent days.
After its rejection at $16,000, bears sent the price to lows of $14,400, at which point it reversed its downward trend and recovered to the upper $15,000 region.
Since then, it has consolidated and may now be on track to increase its volatility as global markets move in response to the vaccine news.
Corona vaccine news makes stocks explode, but keeps Bitcoin on the ground
The news of Pfizer’s highly effective vaccine has set the markets in motion and boosted equities – while the trend in safe-haven investments is slowing.
While the benchmark stock indices all gained several percentage points in their pre-trading hours, the gold price collapsed – and experienced one of the last one-day sell-offs in a long time.
Bitcoin has on several occasions shown signs of correlation with both equities and gold, so it is unclear how this news could affect the price action. It has declined slightly today.
Trader: Vaccine news possibly bad for „value memory“ thesis
One trader has hedged his Bitcoin Long exposure by announcing the vaccine news – with the remark that it could prove highly negative for the safe haven thesis.
„Short hedged my BTC 1:1 due to the vaccine news. The gold has been dumped so heavily that I think it is bad for the value narratives. Not net short protected for spot exposure only“.