Bitcoin has hit a new 2020 high at $16,713 on Monday as a new covid-19 vaccine from Moderna is showing to be over 94% effective in stopping the virus in a preliminary analysis.
Image from Coin Desk
Over the last few months, bitcoin has been experiencing an upward flight on the trend. Some of the reasons for this constant rise could be linked to the public acknowledgement, and adoption of bitcoin by billionaire investor, Stanley Druckenmiller.
Another reason could be the election of Cynthia Lummis, an ardent supporter of bitcoin into the U.S senate, which might mean that favourable laws promoting bitcoin might be proposed in the new U.S administration.
And also the prediction by Tom Fitzpatrick, a senior executive at Citibank that bitcoin may reach over $318,000 in 2021.
The corona pandemic and its uncertainties have made many investors ignored cash and opted for hard assets like bitcoin, gold and so on. Investors usually move their focus to these stores of value when the economy is convulsing, for cover and security. This has made gold to explode, while bitcoin is moving at a fast pace.
Image from newsbtc.com
However, bitcoin had earlier reacted negatively to the Pfizer vaccine news on Monday, November 10, when it said it’s coronavirus vaccine was 90% effective in preventing COVID-19.
Image from Yahoo Finance
With the possibility of a working vaccine, it means that the global economy has a higher probability of recovering faster as businesses that rely heavily on physical interaction will fully resume activities.
This leaves us with an important question – “will bitcoin lose its value in investors’ eyes when the world and the economy return back to normal life?”