Bitcoin surged Monday and got back on track to retest its record high after promising results with a coronavirus vaccine raised hopes for an economic recovery over the next year.
The spot BTC / USD exchange rate rose 0.95 percent after the benchmark cryptocurrency briefly ended its six-week winning streak on Sunday. The pair hit an intraday high of $ 18,777 followed by a small correction to the downside. Even so, it maintained its generally positive bias for the upcoming New York meeting.
Bitcoin sees a bullish continuation of its annual 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
Oxford University and AstraZeneca said their experimental vaccine was up to 90 percent effective against coronavirus with no serious side effects. Her announcement added to investor optimism that the introduction of an effective drug could contain the pandemic by next year and allow the battered financial assets to maintain their losses.
This was evident in the pre-session trading action on the US stock market. The S&P 500-related futures rose 0.5 percent, indicating a profitable session in New York. The Nasdaq-100 and Dow Jones rose 0.4 percent and 0.6 percent, respectively.
The focus on risky assets kept the US dollar under pressure. The greenback fell 0.36 percent against the basket of leading foreign currencies on Monday. Its weakness, in turn, allowed Bitcoin to recover higher for the session.
The cryptocurrency had similarly risen after Pfizer and Moderna announced their vaccine results, reiterating that their traders did not see the coronavirus cure as a threat.
#Bitcoin has decoupled from gold. While the yellow metal has fallen following Moderna’s vaccine news, digital gold (bitcoin) continues to rise. pic.twitter.com/PDUrowBpTb
– Holger Zschaepitz (@Schuldensuehner), November 16, 2020
Bitcoin versus gold
Unfortunately, Bitcoin’s closest rival, gold, was lower due to fears of positive vaccination results. This has shown that certain catalysts in the cryptocurrency market successfully offset the risk-out risks. So it seems that Bitcoin is booming adoption and market outlook among mainstream institutions.
For example, crypto asset management firm Pantera Capital wrote in its report that PayPal had bought 70 percent of all Bitcoin mining supply in the past few weeks. Coupled with Square’s CashApp, both companies bought more BTC than the coined miners, resulting in a supply shortfall in both the retail and institutional markets.
“This is THE story in Bitcoin,” added Pantera. “If other, larger financial institutions follow suit, the supply shortage will become even more unbalanced. Supply and demand only balance each other out at a higher price. ”
Many investors, including Stan Druckermiller and Paul Tudor Jones, remain convinced of Bitcoin’s long-term growth as part of the Federal Reserve’s inflationary policy. In particular, Mr Druckermiller called the cryptocurrency better hedge than gold and said he believed it would recover better than the precious metal.
Speculation seems to be the only reason Bitcoin is going unimpressed by the vaccine news.