Global markets reacted today to the news of the COVID-19 vaccine candidate from pharmaceutical giant Pfizer, which is found to be more than 90% effective. While the Dow Jones (INDEXDJX: .DJI) jumped 1200 points hitting a new 2020-high, Bitcoin and the overall crypto market slipped in immediate response.
However, taking a momentary dip below $15,000 levels, Bitcoin (BTC) has recovered fast and is back above $15,200 levels. At press time, Bitcoin is trading at $15,232 with a market cap of $282 billion. As the Dow Jones, is 4.54% up, the overall crypto market remains 2.23% down.
It is interesting to note that all the assets – Gold, Bitcoin/crypto, tech stocks – that gained heavily during the pandemic period registered a major dip today. On the other hand, oil and non-tech stocks make a quick surge.
Crazy day
Gold just smashing through a monthly range in hours
Oil and non tech stocks reacting strongly
Tech stocks dumped but recovering
Bitcoin remains within its range
Decided I'm not trading until the dust settles pic.twitter.com/jV2qhHKBVf
— //Bitcoin 𝕵ack 🐐 (@BTC_JackSparrow) November 9, 2020
However, despite the sharp bearish swing, Bitcoin still remains range-bound. Last week, Bitcoin (BTC) made major moves and has been consolidating at $15,500 over the weekend. HNIs and institutions have been buying Bitcoin (BTC) in large numbers as the average transaction value has also soared significantly.
Did Bitcoin Whales Just Pull A Trick With Retail Investors?
The sharp Bitcoin price fall and the quick recovery have got the skeptics thinking once again. Some market observers think that there were spoofy sell orders at exchanges only to buy back at lower levels.
Dear noobs,
Bitcoin is NOT naturally going down. It is being pushed down via whales placing spoofy sell orders on exchanges to make noobs and risk managers sell to "buy back lower". They are stealing your bags and will make you buy back at a higher price.
Retweet this.
— SalsaTekila (@SalsaTekila) November 9, 2020
Popular crypto analyst PlanB also stated that big players will suck up all the BTC supply from weak hands. In his latest tweet, PlanB wrote:
“Now watch how those bitcoins that some dumb weak hand sellers sold in big chucks last 4 hours will be sucked up by strong hand buyers with hundreds of smart small 0.01 BTC algo buys. Those BTC will disappear in deep cold storage”.
#BTC sell side liquidity crisis has been started?
In history, Nov 2020 is one of the most important months when BTC is transferred in massive number from exchanges to private wallets
No sellers? More buyers? Bitcoin Market is bullish with less liquidity? pic.twitter.com/BrQFEcD6l0
— Clicar Folks (@ClicarNetwork) November 9, 2020
Many market analysts have been suggesting that the Bitcoin bull run has just started. A majority of them have also said that BTC will cross its all-time high of $20,000 in the next few months.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
