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 a rally, but the last time around when Pfizer revealed their success rate, the cryptocurrency plummeted by over $1,000.
With the likelihood of an effective vaccine growing, and uncertainty surrounding the pandemic and its impact on the economy beginning to fade, how might this impact Bitcoin’s recent bullishness?
Bitcoin Rallies On Moderna Vaccine News, Plummets On Pfizer
Bitcoin price action has been unstoppable since the start of November. Only two instances since the month began, did the cryptocurrency experience a pullback of any significance.
The second of two more than 6% corrections, came just after positive news broke regarding the development of Pfizer’s COVID vaccine.
Since the pandemic first appeared, markets have been turbulent, with most of the volatility playing out to the upside. The uncertainty surrounding the pandemic has caused a flight away from cash and into assets. Hard assets like Bitcoin, crypto, and precious metals, have benefitted the most.
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Investors look toward these stores of value as a safe haven when the global economy gets touchy. Gold this year reached a new all-time high as a result, and the leading cryptocurrency by market cap after three years is only a few thousand dollars away from retesting its former peak as well.
But with things less uncertain, is Bitcoin’s 2020 rally about to come tumbling down?
How will Bitcoin respond to the recent news Moderna has a nearly 95% effective vaccine? | Source: BTCUSD on TradingView.com
Could A Lack Of COVID-Caused Economic Uncertainty Hurt The Crypto Bull Run?
As noted, the prior news of Pfizer’s drug was met with a steep selloff. When the Moderna news made rounds this morning, Bitcoin set yet another 2020 high.
But if the market makers aren’t using the narrative to push prices lower, and have chosen to pump the price of Bitcoin instead, could the long overdue, more drastic correction be next?
Such a rug pull scenario isn’t out of the question, and technical indicators on nearly all timeframes are poised for a reset.
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With Bitcoin being pitched as the answer to uncertainty and the insurance policy against the unknown in 2020, will its perceived value suddenly be diminished in investors’ eyes when the pandemic finally begins to fade?
It is unlikely. The Bitcoin bull run is seemingly back, regardless of what’s going on with the vaccine. And even if a correction does arrive on the heels of an economic sigh of relief, dip buyers have already been activated, and they’ll be ready and waiting for wherever the cryptocurrency falls to support.
Featured image from Deposit Photos, Charts from TradingView.com