Following a crash in both gold and bitcoin (BTC) prices yesterday that sent the much-discussed gold-to-bitcoin correlation even higher, the discussion is now on about what caused the sell-off, and whether a Russian COVID-19 vaccine could potentially be hurting the price of both assets.
At the time of writing (09:39 UTC), bitcoin was still down by 2.6% over the past 24 hours, trading at USD 11,459, after a correction that started Tuesday night and continued into the early hours of Wednesday brought it down to the USD 11,200 level before a recovery towards USD 11,500 began. Meanwhile, the price of gold also saw similar declines, dropping steadily over the same time period before somewhat recovering in early Wednesday trading.
Russia said yesterday that it had approved the world’s first COVID-19 vaccine, as the nation’s Ministry of Health issued what’s called a registration certificate for a vaccine candidate that has been tested in just 76 people. However, the vaccine cannot be used widely until 1 January 2021, presumably after larger clinical trials have been completed, according to Science. However, scientists around the world immediately denounced the certification as premature and inappropriate, as it has yet to complete a trial that convincingly shows it is safe and effective in a large group of people, the report added.
Also in Russia, media outlets are asking what a vaccine could do to BTC prices. For some, the concept of avoiding a second wave is vital.
RBC quotes Oleg Abele, an expert at the Lemon for Tea investment group as stating that while crypto prices rallied this year, that growth could evaporate if the virus-related death toll starts to rise again. A second crypto market dip due to panic selling, he opined, was almost a “100%” certainty.