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In a time, ‘not’ far far away – We will see an Explosive Crypto Bull-Market

Pfizer and Moderna’s recent news has to work COVID-19 vaccines hit investment markets like a flash from the skies.

Investors globally raced to figure out who would benefit most in a post-PANDEMIC situation… and who would not.

One train of thought was that a viable vaccine would drive to a fast rebound from the crisis and despair created by pandemic lockdowns worldwide.

That’s why recently battered, “old economy” stocks leaped on the news, while tech-heavy, allegedly “stay-at-home” stocks — that benefited from the current pandemic’s situation — was left behind.

Nevertheless, was the performance of Bitcoin vs. classic sanctuary investment sectors like gold and government bonds.

The chart below shows the price path of each one shortly before and after the Pfizer bombshell.

Bitcoin vs. Gold and Bonds

Percentage difference in Bitcoin (in blue) against gold (in red) and US government bonds (in green) the day Pfizer announced a working COVID-19 vaccine.

As global markets raced to the price in a speedy post-pandemic return, fears about what the future might hold naturally dissipated.

That yanked the rug out from under safe-haven investments — like gold and government bonds. As you may notice, they both rolled off the edge of a cliff.

Despite being a critical safe-haven investment in its own right, Bitcoin persisted. Furthermore, this exceptional divergence of direction continues.

Gold prices have been in a gridlock ever since. Bonds survived to climb back up only about 2/3rds of their post-Pfizer plunge. In a swift move, Bitcoin shattered through USD 17,000, USD 18,000, and USD 19,000.

Increasingly, this strengthens the idea that Bitcoin is much more than just a crypto-sanctuary when it comes to store-of-value assets.

The finance world is growing to be increasingly bullish on it by the day. This year, you can also see this in how essentially every significant drop in bitcoin has provoked a fuss of window-shopping buying.

And you should remember the expectation of a post-COVID planet has also provoked an earlier sluggish territory of the crypto-markets: Ethereum and the Alts.

Bitcoin against the Alts

Percentage difference in Bitcoin (in blue) vs. the altcoins (in yellow) the day Pfizer advertised a working COVID-19 vaccine.

As you can see, when the Pfizer news broke out, both bitcoin and the altcoins initially went down together. In agreement with the safe-haven sell-off. But only for a few minutes. Then, they both shifted course and made a strong move to the upside.

This is a deal-breaker since bitcoin began to rebound from the September crypto correction, the altcoins have been pretty much stuck-in-the-mud.

That’s not the situation anymore. Bitcoin and the altcoins are now both powering higher. Unitedly.

This is occurring while traditional safe havens are striving, making this even more impressive. It all confirms something we’ve been saying for a long time:

  • Crypto assets stand alone at the intersection of cutting-edge technology and sound money.
  • That makes them the only sure defense against the coming digitization of fiat monies and the reckless monetary policies they will accelerate.

We are now fast approaching a post-COVID planet where the only feasible haven will be crypto. Think about it.

  • The price of government bonds can be inflated away at will by unelected central bank officials. And once fiat currencies shift digital, they will have the technology to inflate at light speed.
  • Gold may undoubtedly be behind the government’s ability to forge. But it’s so bulky and hard to store that confiscation-proof ownership is complicated to achieve.
  • Only cryptocurrencies (like bitcoin) stored on decentralized blockchains allow you to keep total, direct control of your assets. No matter how out-of-favor — or targeted — you may be by powerful government or gangland figures.

As the world gently but indeed wakes up to this certainty, crypto assets are going to enter their most fiery bull market run ever. And it may not be very far away.

Juan Villaverde is an econometrician and mathematician devoted to the analysis of cryptocurrencies since 2012. He leads the Weiss Ratings team of analysts and computer programmers who created Weiss cryptocurrency ratings.

Dr. Bruce Ng is an educator in Distributed Ledger Technology (DLT) and has been a lead crypto-tech analyst for Weiss Cryptocurrency Ratings since shortly after their launch.

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