Home / Altcoins / Has COVID-19 Vaccine News Decoupled BTC From Gold? – Technical Analysis

Has COVID-19 Vaccine News Decoupled BTC From Gold? – Technical Analysis

Has COVID-19 Vaccine News Decoupled BTC From Gold?

The coronavirus pandemic has taken 2020 by storm and has led to a major panic in all markets: stocks, securities, forex, commodities, crypto, etc. Amidst any global event or uncertainty, the safe havens for investors are the negatively correlated assets to the market. Traditionally, these assets have been gold, USD, government securities, defensive stocks (health, food, utilities), and cash. Of late, Bitcoin has been perceived as a value of storage and has been correlated with gold and stocks to quite an extent.

Since the past few months, we have seen that BTC has been following the price action of gold and the price action correlation between the two assets have been above 70%, according to SKEW.

GOLD/USD

Gold/USD

BTC/USD

BTC/USD

As you can see from the graphs, the price action on BTC and gold has been similar.

COVID-19 Vaccine and Its Effect on the BTC/Gold Correlation

Pfizer and BioNTech announced that the late phase 3 results were successful. Their COVID-19 vaccine has a 90% prevention rate amongst candidates who were not exposed to COVID-19 previously. As soon as this news hit the markets, we saw a rapid decline in the price of GOLD.

Gold prices plummet after news of the COVID-19 vaccine came out.

On the other hand, since a potential cure for this pandemic was out, we saw an increase in the index of global stock exchanges since last week.

Global markets

Along with an increase in global stocks and decrease in gold prices, BTC was relatively unaffected by the drop in gold prices and became bullish. Bitcoin price has gone up from $15,000 on November 9 to $17,998 today (November 19).

Conclusion

In times of pandemic, investors resorted to BTC and now that we have a cure, investors are still resorting to BTC. Bitcoin has truly started showing extreme resilience towards all types of negative news and is coming out on top as one of the best assets to hold. This digital gold is outperforming all assets in times of both despair and relief.

Images courtesy of TradingView.

Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational and informational purposes only. Any information or strategies are thoughts and opinions relevant to accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided.

Do your own due diligence and rating before making any investments and consult your financial advisor. The researched information presented we believe to be correct and accurate however there is no guarantee or warranty as to the accuracy, timeliness, completeness. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd. All rights reserved.

 


Source link

Check Also

SKALE Network and Ethereum – a Compelling Choice for Developers – Blockchain Technology

The blockchain and crypto sphere is arguably one of the most important innovations of the ...

Leave a Comment:

Your email address will not be published. Required fields are marked *