The news is out! We’re on the verge of developing a coronavirus vaccine.
The remedy comes by way of Pfizer, one of the companies working on a formula to fight this deadly disease that has been putting certain portions of the world on lockdown for eight months now. This is good news, but it appears to harm bitcoin, which dropped by more than $1000 after the announcement.
Bitcoin is back to where it was before the news introduction. As of now, bitcoin is about to trading for more than $15,300, which is where the number one cryptocurrency by market cap stood before the Pfizer news, but it is still strange that the currency has taken such a dramatic turn. An event like this should be propelling bitcoin onward, but it does the opposite.
One of the main problems could be that bitcoin thrives on chaos. When the financial world is unstable, bitcoin seems to be wearing the tightest pants of all. During situations like this, the US dollar and other fiat currencies are not doing so well. They are subject to inflation and experience weaknesses.
When these assets are at the barrel’s bottom, bitcoin will have an easier time climbing to the top. When stocks are down, bitcoin rises. Bitcoin has been developed to ease the pains of a financially unstable environment. However, when things are calm, bitcoin will have no breathing room.
In the past months, bitcoin has been showing itself to be an asset of the century. The currency has risen to $12,000 since March, as it dropped below the $4,000 line. But during a press time, it is selling for over $15,000. The asset has grown nearly four times earlier in the year; it clearly shows a massive change.
There is no need for chaos.
During all these months, the virus and other issues have been hitting the financial markets with everything they have. Stocks were dropping crazily, and even gold was taking a few hits here and there. This has created the most unique environment for BTC in some time now, therefore allowing it to thrive and add tens of thousands of dollars into its price.
With the introduction of the vaccine and what will be more vital for the people of America and everywhere else, things will ease down in the coming weeks and months, which means that bitcoin can find itself on a rocky ledge from now on.
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