COVID Vaccine Tanked Gold, Crypto Traders HODL

A COVID vaccine has reportedly emerged which is 90% effective but with its emergence, the gold tanked and the price of crypto assets continued. Wall Street reacted positively to the news of the COVID vaccine but let’s see more of the analysis in our crypto news.

The trading volume across crypto is down according to reports and some of the world’s biggest centralized exchanges saw double-digit declines. The price of gold tanked on the news that the vaccine is not far away. While the price of BTC and crypto has seen steady growth over the past few months, the trading volume got down by 20% according to a new report. In research by Crypto Compare, the amount of crypto changing hands has slowed by a fifth with some exchanges seeing bigger drops.

Binance saw a 33% decline over the previous month, OKEX by 42%, Huobi Global by 31.4%. Most of the indicators pointed out to people buying and holding their assets on the assumption that their value will go up over time which is one reason why there are not about 1 million BTC Wallets holding about $10,000 in BTC. Others choose to lock up their crypto in interest-earning products like AAX Savings which provide investors with instant interest and no lock-up restrictions. The rest seem to have been in the mad yield farming dash which led to a boom in decentralized exchanges like Uniswap which was the boost behind DeFi’s frenzy.

The news did little to dampen the spirits on the crypto market as the global market cap had back to back daily gains and nudged up about 0.38% of the previous day. the biggest winners in the top 20 were XRP, 3.58% to its market cap, and Chainlink, adding 5.56% taking the weekly gains to 27%. Bitcoin didn’t move at all over the past day as the sentiment among BTC futures contracts softened a little. The precious metal on the other hand dived sharply on the news of the Pfizer COVID vaccine which reportedly was 90% effective. With the news, the markets surged and traders moved to take their assets out of gold and put them back into stocks hoping to earn on the good news.

The vaccine had a positive impact on Wall Street as well. The S&P and DOW rocketed once the news emerged in early trading. The DOW went up by 1.610 points or 5.7% before pulling back later. The big winners were the hospitality industries that got the most job losses during the lockdown. Stocks in airlines saw a huge surge while tech stocks dipped as investors emerged.

Many market watchers are warning and urging people to calm as the vaccine is months away from being approved. The companies are still announcing job losses in retail so cash reserves companies could have to prepare for tough times.