• Press Releases
    • Submit a press release
    • Read All
  • Advertise
  • Contact us
Crypto.com Logo Crypto.com Logo
Bitcoinist.com
No Result
View All Result
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Industry News
    • Press Releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Events
  • Play Games
  • Play Casino Games
  • Win 1 BTC
Breaking News: This Bankrupt Crypto Firm Returns 27,000 Mining Rigs To Pay Off Loan
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Industry News
    • Press Releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Events
  • Play Games
  • Play Casino Games
  • Win 1 BTC
Bitcoinist.com
No Result
View All Result
Breaking News: This Bankrupt Crypto Firm Returns 27,000 Mining Rigs To Pay Off Loan
Bitcoin, cryptocurrency, BTCUSD, BTCUSDT, inflation, vaccine
Advertisement

Bitcoin Looks at COVID-19 Vaccine As Its Next Potential Bullish Narrative

Yashu Gola by Yashu Gola
2 years ago
in Bitcoin
0
Advertisement

A COVID-19 vaccine appears like bad news for Bitcoin until it does not.

The arrival of the novel coronavirus pandemic was initially worse for every market, including cryptocurrency. The BTC/USD exchange rate fell more than 60 percent in just two days of trading in March 2020, its decline coinciding with a crash across the global financial market.

Don't wait! Jump on this Crypto Deal and get a 150% Welcome Bonus plus 100 Free Spins on your deposit today!

Later, central banks reacted by reducing their benchmark lending rates, coupled with programs that purchased government and corporate debts endlessly. The pseudo-quantitative easing, followed by governments’ decision to spend trillions of dollars on their social welfare schemes, reduced the US dollar’s purchasing power.

The greenback’s decline and negative-yielding debts prompted investors to seek profits in scarcer assets, leading to a massive recovery in the Bitcoin market. Between March and now, the cryptocurrency surged by more than 350 percent, hitting $19,000 for the first time since December 2017.

Bitcoin, cryptocurrency, BTCUSD, BTCUSDT
Bitcoin touched a new yearly high on Tuesday on increasing safe-haven appeal. Source: BTCUSD on TradingView.com

But the prospects of global economic recovery are improving. The last two weeks saw three pharmaceutical firms coming up with their respective vaccines, each claiming at least 90 percent efficacy against COVID-19. The news sent gold, Bitcoin’s top rival, down two weeks in a row.

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?
570% up to 12 BTC + 300 Free Spins for new players & 1 BTC in bonuses every day, only at Wild.io. Play Now!

Surprisingly, Bitcoin itself didn’t move lower, helped by its booming adoption among mainstream financial houses (read PayPal). The market’s desire to retest $20,000, Bitcoin’s record high to date, kept speculative bullish bets higher in both the spot and derivatives bazaars.

Vaccine Asserts Inflation

The latest Bitcoin investors, including financial veterans like Paul Tudor Jones and Stan Druckenmiller, admit that they are long on the cryptocurrency because of its ability to protect their portfolios from the jeopardies of dollar devaluation and higher inflation.

MicroStrategy, a Nasdaq-listed firm that replaced its $425 million cash reserves with Bitcoin, believes the same.

It is because a COVID-19 vaccine does not promise to reverse policies that so far have pent-up demand for Bitcoin. The Fed Funds Futures Curve anticipates the next rate hike to appear in 2023. Meanwhile, the US Tips 10-Year Inflation Breakeven Rate shows a continuous uptrend, suggesting that the market awaits higher inflation.

fred, bitcoin, 10-year tips, inflation
US Tips 10-Year Inflation Breakeven Rate. Source: FRED

In short, the damages incurred on the economy during the lockdown period will take more time to heal. A vaccine merely accelerates the recovery, but it also tends to drive inflation higher as people return to their pre-pandemic lives.

For instance, the price index for personal consumption expenditures, a barometer that the Federal Reserve uses to measure inflation levels, stood at 1.4 percent in October 2020, just shy of the central bank’s 2 percent target. Economists forecast it to surge to 1.7 percent by the end of November 2020.

Meanwhile, Ellen Zentner, the chief US economist at Morgan Stanley, sees inflation reaching 2 percent by the end of 2022. At the same time, Joel Prakken, the chief US economist at IHS Markit, suggests that oil prices would rise and the dollar would weaken further amid the economic recovery. It will also drive the inflation upward.

All and all, the said forecasts put Bitcoin in an assertively bullish space in years to come. A vaccine merely triggers inflation, allowing more institutions/investors to exchange their cash holdings for the cryptocurrency.

ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.

Yashu Gola

Yashu Gola

Globetrotter Yashu Gola has been working as a financial/crypto market journalist since 2013. He is an information technology graduate, a cryptography junkie, a filmmaking enthusiast, and an avid reader of Jon Erickson, Agatha Christie, JK Rowling, and Isaac Asimov.

Related Posts

tulip mania bitcoin

Celebrating The Tulip Mania Anniversary With Bitcoin & Crypto

8 hours ago
Bitcoin Long-Term Holders Now Hold 78% Of Supply, Highest Level Ever

Bitcoin Long-Term Holders Now Hold 78% Of Supply, Highest Level Ever

12 hours ago
Bitcoin

Why Bitcoin Is Among ‘Hottest Subjects’ On Earth, According To ‘Rich Dad’ R. Kiyosaki

14 hours ago
Bitcoin BTC BTCUSDT

Ralio Dalio Praises Bitcoin For 12 Years Of History, But Issues Warning

1 day ago
Bitcoin Mining

Bitcoin Mining Could Help Scale Solar Power, Report Reveals

1 day ago
Bitcoin Inches Closer To $24K As Fed Bares ‘Disinflationary Process’

Bitcoin Inches Closer To $24K As Fed Bares ‘Disinflationary Process’

2 days ago
Please login to join discussion

Premium Partners

Premium Casino Partners

Top Casinos

BitStarz
BitStarz
Punt Casino
Punt Casino
mBit
mBit
Metaspins
Metaspins
1xBit
1xBit
Coinplay
Coinplay
K8
K8
Vegas Casino
Vegas Casino

Sportbooks

Coinplay
Coinplay

Press Releases

  • The Three Best Cheap Cryptos To Buy Now – Snowfall...

    16 hours ago
  • Could Big Eyes Coin Bring Warmth To The Long Winter? How...

    16 hours ago
  • Cryptocurrencies That Connect With Their Community...

    16 hours ago
  • Rivalry Between Dogecoin and Shiba Inu Escalates as Big...

    16 hours ago
  • Get Rich While Gaming: RankerDAO Offers Unlimited Potential...

    18 hours ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS
  • NAGA

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

Pages

  • Contact us
  • Editorial Policy
  • Advertise
  • Crypto Prices from Nomics
© 2023 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Industry News
    • Press Releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Events
  • Play Games
  • Play Casino Games
  • Win 1 BTC

© 2022 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.