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.”
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