By Hassan Mehmood (Saudi Arabia)
As soon as Bitcoin claimed $15,800, it then shredded a significant portion of its value after plunging 6%. The strong position of the dollar along with traditional markets’ strength is the major reasons behind the bearish trend of the world’s leading digital asset.
Pfizer claims Effective Vaccine for COVID-19 Patients
Today, Bitcoin reached a daily high of $15,840 before slumping to as low as $15,200 in just a few hours. A huge volatility has seen after the US-based pharmaceutical firm Pfizer claimed its vaccine for Coronavirus was more than 90% effective to cure the patients affected by COVID-19.
According to Pfizer, the company has derived the results after checking it on over 44,000 Corona patients as participants of an ongoing trial. It will go for mass use after acceptance from the department of the Food and Drug Administration.
After Pfizer’s claim of a successful vaccine, the US equity markets show clear signs of a bullish rally as the Dow Jones has increased 1,000 points. Wall Street makes a jump as the US dollar has strengthened while safe-haven assets, such as Bitcoin and gold, make downward movements.
Prominent trader Michael van de Poppe hinted at the recovery of the dollar which may affect the price values of non-traditional hedge instruments, including gold and Bitcoin. “There we seem to go. DXY bouncing up as there’s more certainties at this point, through which assets like bitcoin, gold and silver drop down substantially,” he added.
Whales’ Selling of Bitcoin
As Bitcoin was going down, on-chain analytics firm CryptoQuant noted whales were selling BTC in an attempt to take profit. Another market expert with Twitter username “Byzantine General,” observed a similar pattern of Bitcoin’s selling on the part of whales. Whales tried to sell their holding because $15,800 was a strong resistance level to overcome.
Bitcoin is still exchanging hands above $15k which shows not all whales are interested to empty their BTC bags for profit. Crypto trader Cantering Clark claims long-term players have not sold their capital but they want to hold it for a long time.
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