Well, the news is out. We’re on the verge of fully developing a coronavirus vaccine. The remedy comes by way of Pfizer, which is one of many companies that have been working on a formula to combat this deadly disease that has been putting certain portions of the world on lockdown for roughly eight months. This is good news to say the least, and yet it appears to have had a negative effect on bitcoin, which seemingly fell by more than $1,000 after the announcement was made.
Bitcoin Falls After COVID Vaccine Introduced
To be fair, bitcoin is back to where it was prior to the news’ introduction. At the time of writing, bitcoin is back to trading for more than $15,300, which is where the world’s number one cryptocurrency by market cap stood prior to the Pfizer news, but it’s still strange that the currency would take such a dramatic turn like that, and for what purpose, exactly? Something like this should be propelling bitcoin forward, but it seemed to do the opposite.
One of the main problems could be that in many ways, bitcoin is like the Joker in “The Dark Knight.” It thrives on chaos. When the financial environment is unstable, bitcoin seems to be rocking the tightest pants of all. It’s during situations like this that the US dollar and other fiat currencies are not doing so hot. They’re subject to inflation and likely experiencing weaknesses.
When these assets are at the bottom of the barrel, bitcoin has an easier time climbing to the top. When stocks are down, bitcoin rises. Bitcoin was developed to ease the pains of a financially unstable environment, but when things are relatively calm, bitcoin apparently has no breathing room.
Over the past several months, bitcoin has been showing itself to be the asset of the century. The currency has risen roughly $12,000 since March, as it briefly dropped below the $4,000 line. However, at press time, it is selling for more than $15,000. The asset has grown by nearly four times what it was earlier in the year: clearly a massive change.
There’s No Chaos To Be Had
But during all these months, the virus and other issues were hitting the financial markets with everything they had. Stocks were falling like crazy, the US dollar was weakening every day, and even gold was taking a few hits here and there. This created the greatest environment for BTC in quite some time, thereby allowing it to thrive and add literally tens of thousands of dollars to its price.
Now, with the introduction of a vaccine and what will allegedly be stronger health for the people of America and everywhere else, things are likely to ease down in the coming weeks and months, which means that bitcoin could find itself on a shaky ledge from time to time.