Your favorite crypto news blog

Bitcoin Extends Rebound on AstraZeneca-Oxford Vaccine Results

Bitcoin 2020/11/23 14:21 by Yashu Gola

Bitcoin rose Monday, putting itself back on track to retest its record high after promising results on a coronavirus vaccine reinforced hopes of an economic rebound next year.

The spot BTC/USD exchange rate climbed 0.95 percent after the benchmark cryptocurrency briefly snapped its six-week winning streak on Sunday. The pair touched an intraday high of $18,777, followed by a small correction lower. Nevertheless, it maintained its overall upside bias for the New York session ahead.

Bitcoin, cryptocurrency, BTCUSD, BTCUSDTBitcoin eyes a bullish continuation towards its yearly high near $19,000. Source: BTCUSD on TradingView.com
Bitcoin eyes a bullish continuation towards its yearly high near $19,000. Source: BTCUSD on TradingView.com

Another Vaccine

The University of Oxford and AstraZeneca said their experimental vaccine was up to 90 percent effective against coronavirus without any serious side-effects. Their announcement added to optimism among investors that the launch of an effective drug could curb the pandemic by the next year while allowing the beaten financial assets to retain their losses.

It was visible in the pre-session trading moves in the US stock market. Futures linked to the S&P 500 rose climbed 0.5 percent, pointing to a profitable New York session ahead. Nasdaq-100 and Dow Jones rose 0.4 percent and 0.6 percent, respectively.

Meanwhile, focus on risk-on assets kept the US dollar under pressure. The greenback fell 0.36 percent on Monday against the basket of leading foreign currencies. Its weakness, in turn, allowed Bitcoin to recover higher for the session.

The cryptocurrency had surged similarly after Pfizer and Moderna announced their vaccine results, iterating that its traders didn’t see the coronavirus cure as a threat.

Bitcoin vs. Gold

Unfortunately, Bitcoin’s closest rival, gold, was heading lower on fears of positive vaccine results. That proved that certain catalysts in the cryptocurrency market are successfully offsetting the risk-off risks. So it seems, it could be Bitcoin’s booming adoption and market outlook among mainstream institutions.

For instance, crypto asset management firm Pantera Capital wrote in its report that PayPal bought 70 percent of the total Bitcoin mining supply in recent weeks. Coupled with Square’s CashApp, both firms purchased more BTC than the miners minted, leading to a supply deficit in both retail and institutional markets.

“That is THE story in Bitcoin right now,” Pantera added. “When other, larger financial institutions follow their lead, the supply scarcity will become even more imbalanced. The only way supply and demand equilibrate is at a higher price.”

Many investors, including Stan Druckenmiller and Paul Tudor Jones, remain convinced about Bitcoin’s long-term growth amid the Federal Reserve’s pro-inflation policies. Mr. Druckenmiller particularly called the cryptocurrency a better hedge than gold, stating he believes it would rally better than the precious metal.

Speculation, so it appears, seems to be the only reason why Bitcoin remains unfazed by the vaccine news.

0 Like(s)

You should also read...

Bitcoin 01/04/20 14:40 by Yashu Gola
Three Key Reasons Why Bitcoin Could Plunge Below $5,000 in April
Bitcoin prices plunged sharply over the first three months of the year as concerns about the global coronavirus pandemic and its impact on the economy grew. The benchmark cryptocurrency closed the yea...
Read More
Bitcoin 16/11/20 21:00 by Tony Spilotro
How Bitcoin Could React To Promising Moderna Vaccine
This morning, news broke that Cambridge, Massachusetts-based biotech firm Moderna, had reached 94.5% efficiency in preventing the onset of COVID with their in-the-works vaccine. Bitcoin responded with...
Read More
Altcoins 24/11/20 02:00 by Tony Spilotro
Fibonacci Day: How To Use Math To Trade Bitcoin And Altcoins
Bitcoin price broke above its 2019 high, and after that, took off another $5,000. The reason why the level was so critical to confirming a reversal back into a bull market, was due to the resistance r...
Read More
Bitcoin 03/12/20 14:07 by Yashu Gola
Bitcoin Tilts Higher as Pelosi Signals Stimulus Bill by Year’s End
Bitcoin posted modest gains on Thursday as Democratic leaders signaled to reach an agreement with Republicans to pass the second round of COVID-19 stimulus by year’s end. House Speaker Nanci Pel...
Read More
Bitcoin 17/12/20 14:04 by Yashu Gola
Economist Calls Bitcoin “Massive Bubble” After Price Hits Record High
Bitcoin’s potential as an emerging safe-haven alternative to gold raised its demand among institutional players in 2020. But a prominent economist is still skeptical about the cryptocurrency&rsq...
Read More