Bitcoin has settled into a consolidation area after its sharp rise since early October. However, with increasing selling pressure, many analysts are calling for a sharp correction in the short term if USD 15,000 does not hold.
Currently, the price of Bitcoin has fallen 1% to $ 15.3,000 in the past 24 hours.
Source: BTCUSDT on TradingView.com
On the other hand, US stocks are booming. In record trading prior to the IPO, the Dow Jones opened 5% while the S&P 500 profited 3%.
Analysts have attributed this to the optimism generated by the news of Pzifer’s successful vaccine trials.
Energy, travel and finance, which were hardest hit by the panic situation, were among the big percentage winners.
In this context, Baird market strategist Michael Antonelli spoke about the easing of election uncertainty associated with the vaccine news, which sparked frenzied buying activity in US equity markets.
“The uncertainty about the choice is disappearing in the rearview mirror. Now we have that boost of investor enthusiasm following the vaccine news. ”
Vaccine offers hope for a return to normal
The effects of a vaccine rollout suggest a return to normal. That means no more locks, the end of social distancing and the freedom to be in public without a mask.
Mixed messages in this regard, however, increase the uncertainty of the situation that Bitcoin could possibly catalyze.
The BBC claims that despite the impending introduction of the vaccine, it will take time to control the virus. In the meantime, COVID measures will remain in place until authorities consider the virus to be under control.
“There is still the tremendous challenge of making enough vaccines and actually getting them into people. Until then, everything will take time and we need something to control the virus by then. ”
Erik Voorhees, CEO of Shapeshift, has blown the uncertainty. He believes the authorities have little power to enforce coercive measures once a vaccine is in place.
Once a vaccine is widely used, suspensions and mandates of all kinds should be terminated immediately.
High risk individuals can opt for a vaccine, and anyone who accepts the risk of COVID can do so.
No justification for coercion once the vaccine is out.
– Erik Voorhees (@ErikVoorhees) November 9, 2020
With that in mind, some would argue that the vaccine-driven stock market rally was an early response.
Old boom while Bitcoin takes a breather
Safe haven assets were the day’s biggest loser. Bitcoin held up for the most part with a decline of just 1%. But gold closed the day 5% at $ 1,860 an ounce.
As Bitcoin takes a breather, the altcoins, which took a hit during the five-week BTC rally, are gradually recovering.
A look at the Bitcoin dominance shows a significant correction from 66.4% dominance on Friday of last week. Since then, the dominance has ranged between 65.0% and 64.8%.
Source: BTC.D on TradingView.com
As a result, the top 100 tokens saw some impressive gains over the past week. Especially with multiple DeFi tokens posting notable gains.
But top performer Civic, an identity verification token, is leading the revival with a staggering 512% gain over the past week.
Altcoin holders are praying that Bitcoin dominance will continue to decline.