Bitcoin and Gold Down as Coronavirus Vaccine Turns ‘Risk-on’
Positive human trials for the COVID-19 vaccine seems to be turning the market sentiments to ‘risk-on’ mode again. Yesterday, the Dow Jones Industrial Avg. (DJIA) and S&P 500 index rose by 3.85% and 3.18%, respectively. Whereas, Gold and Bitcoin took a beating at the edge of a bullish breakout.
On Monday, Moderna, Inc., an American Biotechnology firm, reports positive results in the first human trials to build anti-bodies against Coronavirus. The price of Moderna Inc. stock surged over opened with a 27.9% positive gap surging from $66 to a high at $87, at the time the news broke out.
Gold Comeback Denied, Bitcoin Bears Getting Stronger?
Moreover, while a vaccine brings positive tidings for pharmaceutical manufactures, it is also starting to remove the fears of a second breakout. Subsequently, gold which made another yearly high around $1761, dropped hard to $1730 – logging a bearish candlestick on the daily. Moreover, Bitcoin which opened positive on a weekly scale pushing towards $10,000 is also staring to look weak around $9600.
The positive funding rate on BitMEX dropped in magnitude, as the bulls started to fade with a drop in Bitcoin [BTC]. Nevertheless, the futures and options OI (Open Interest) at CME continue to range at an All-Time High. Reduced selling pressure from miners could continue to act as a bullish catalyst attracting institutional investments.
Bearish Market Sentiments Becoming Weak
The uptrend in stocks before the revelation of a vaccine was die to ‘overwhelming Fed support.’ Nevertheless, that had little effect on the uptrend in gold looking to move past $1800 (2012 highs). Peter Schiff, a gold bug and Bitcoin critic tweeted,
Optimism over a potential # vaccine has investors buying stocks and selling gold. But even if the vaccine pans out, the stocks investors should be buying are those that mine #. That’s the best way to vaccinate a portfolio against the No-Limit Powell inflation epidemic.
Furthermore, China also announced a $2 billion support for economic and social development” in developing countries to fight against the pandemic at a WHO meeting. Hence, there is a seems to be a strong dilution around the perceived detrimental effects of economic slow-down due to the virus.
Do you think Bitcoin bull run will continue due after the halving effect, or market sentiments will push it to the bears? Please share your views with us.
Original Source: Coin GApe Bitcoin and Gold Down as Coronavirus Vaccine Turns ‘Risk-on’