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Pfizer's COVID-19 Vaccine News Throws Bitcoin Rally Off Course

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Pfizer's COVID-19 Vaccine News Throws Bitcoin Rally Off Course

Bitcoin traded nearly flat but above the $15,000 level at press-time after going as low as $14,865.33 in a 24-hour period.

What Happened: Bitcoin’s price fell by nearly $1,000 on Monday as stocks rallied after Pfizer Inc (NYSE: PFE) said its coronavirus vaccine was 90% effective in preventing COVID-19.

“Bitcoin’s retracement through the $15,000 level is a continuation of the gradual move downward during the past few days,” eToro Managing Director Guy Hirsch told CoinDesk.

The apex cryptocurrency is entering into “whipsaw markets that follow huge gains” in the short-term, according to Cindy Leow, portfolio manager for 256 Capital Partners.

“We see immediate support at BTC’s monthly [volume-weighted average price] of $14,700, from which BTC has steadily bounced off of, indicating that buyers still maintain control,” Leow told CoinDesk.

Altcoins mostly followed Bitcoin into negative territory with Ethereum (ETH) falling 0.51% to $448.31, Bitcoin Cash (BCH) falling 1.96% to $262.26, and Litecoin declining 2.26% to $59.01.

XRP (XRP) and Monero (XMR) fell 0.79% and 1.58% respectively to $0.25 and $116.31. Chainlink (LINK) gained 2.75% to $12.80, bucking the trend.

Why It Matters: The S&P 500 gained 3.2% on Monday following news of Pfizer’s COVID-19 vaccine. Chris Zaccarelli, chief investment officer for Independent Advisor Alliance described it as a “game changer” for investors but cautioned on the longevity of the perfect storm.

Vaccine pushed stocks of companies that had seen their business undermined by the pandemic, including travel companies such as Carnival Corp (NYSE: CCL) and United Airlines Holding Inc (NASDAQ: UAL).

Bitcoin is sometimes viewed as a safe haven and such a status was underscored when, for example, the price of the cryptocurrency rose and fell in tandem with escalating or de-escalating tensions between the U.S. and Iran in 2019.

On Monday, Gold had reportedly fallen to $1,849.93, the lowest since Sept. 28 after the Pfizer news emerged.

Spot Gold gained 1.4% to 1,886.65 at press time as investors turned to the precious metal to hedge inflation arising due to possible coronavirus-related U.S. stimulus measures in the future.

Price Action: Bitcoin traded 0.51% lower at $15,345.10 at press time.

 

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