Gold and bitcoin tumble while equities swing upward on COVID-19 vaccine news

advertisement

Cryptocurrency markets whipsawed Monday morning during a broader market session driven by news from pharmaceutical firms Pfizer and BioNTech about their late-stage COVID-19 vaccine efforts.

The price of bitcoin bucked the broader market, falling by more than 5% after rallying above $15,800 earlier this morning. At last check, the price of bitcoin was trading slightly below $15,000. Meanwhile, global equities reacted positively to the vaccine news, which reports say has been found to be more than 90% effective. 

The S&P 500 index is trading up nearly 3% at the time of writing. Leading the charge were stocks most impacted by COVID-19 related lockdowns such as airline companies. 

Conversely, the news sent gold into a tailspin. After enjoying a months-long rally, the price of bullion was trading down nearly 5%. This price action is notable given that bitcoin has mostly traded in line with risk-on assets rather than safe haven assets such as gold. 

As for gold, one analyst said the metal is experiencing a "reset" after months of strong performance. 

"Perhaps we're now seeing a bit of a reset moment for gold, where its correlation with risk assets starts to fade and it returns to its traditional roots as a safe haven instrument," Craig Erlam of OANDA noted. "Although this may be a little premature at this stage."

Related Reading

Get Your Crypto
Daily Brief

Delivered daily, straight to your inbox.

Binance Helps Take Down Cybercriminal Ring Laundering $500M in Ransomware

Over the past year, Binance has expanded its in-house AML detection and analytics capabilities. Based on research and analysis, as well as an understanding of cybercriminals' history and cashout tactics, Binance arrived at the conclusion that the biggest security problem in the industry today is money connected to cyberattacks being laundered through nested services and parasite exchanger accounts that live inside macro VASPs, including exchanges like Binance.com
Read Full Story
Sponsored Post

Okcoin is launching SATs mode as part of wider retail push

  Okcoin, which was founded in 2013, is doing something different in a crowded field of crypto exchanges: it’s going to allow clients to denominate trades in bitcoin in units of satoshi, rather than BTC.  On this episode of The Scoop, Okcoin CEO Hong Fang joined host Frank Chaparro for a discussion on Okcoin’s rapid […]
Read Full Story
Sep 27, 2021, 5:27PM UTC
More