Bitcoin and Gold Down as Coronavirus Vaccine Turns ‘Risk-on’

Published May 19, 2020 | Updated July 24, 2020

coronavirus vaccine gold bitcoin
Image Source: Aljazeera

Bitcoin and Gold Down as Coronavirus Vaccine Turns ‘Risk-on’

Positive human trials for the COVID-19 vaccine seems to be turning the market sentiments to ‘risk-on’ mode again. Yesterday, the Dow Jones Industrial Avg. (DJIA) and S&P 500 index rose by 3.85% and 3.18%, respectively. Whereas, Gold and Bitcoin took a beating at the edge of a bullish breakout. 

On Monday, Moderna, Inc., an American Biotechnology firm, reports positive results in the first human trials to build anti-bodies against Coronavirus. The price of Moderna Inc. stock surged over opened with a 27.9% positive gap surging from $66 to a high at $87, at the time the news broke out.

Gold Comeback Denied, Bitcoin Bears Getting Stronger?

Moreover, while a vaccine brings positive tidings for pharmaceutical manufactures, it is also starting to remove the fears of a second breakout. Subsequently, gold which made another yearly high around $1761, dropped hard to $1730 – logging a bearish candlestick on the daily. Moreover, Bitcoin which opened positive on a weekly scale pushing towards $10,000 is also staring to look weak around $9600.

gold btc chart
Gold and Bitcoin 1-Hour Chart (TradingView)

The positive funding rate on BitMEX dropped in magnitude, as the bulls started to fade with a drop in Bitcoin [BTC]. Nevertheless, the futures and options OI (Open Interest) at CME continue to range at an All-Time High. Reduced selling pressure from miners could continue to act as a bullish catalyst attracting institutional investments.

Bearish Market Sentiments Becoming Weak

The uptrend in stocks before the revelation of a vaccine was die to ‘overwhelming Fed support.’ Nevertheless, that had little effect on the uptrend in gold looking to move past $1800 (2012 highs). Peter Schiff, a gold bug and Bitcoin critic tweeted,

Optimism over a potential #COVID19 vaccine has investors buying stocks and selling gold. But even if the vaccine pans out, the stocks investors should be buying are those that mine #gold. That’s the best way to vaccinate a portfolio against the No-Limit Powell inflation epidemic.

Furthermore, China also announced a $2 billion support for economic and social development” in developing countries to fight against the pandemic at a WHO meeting. Hence, there is a seems to be a strong dilution around the perceived detrimental effects of economic slow-down due to the virus.

Do you think Bitcoin bull run will continue due after the halving effect, or market sentiments will push it to the bears? Please share your views with us.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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Nivesh Rustgi 1181 Articles
Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)
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