The Great Bitcoin Drop
This morning, Bitcoin, the heavyweight champion of the crypto ring, took a nosedive, plummeting about $1,000—a staggering 6%—in just a few hours. This dramatic price shift occurred as Pfizer, alongside biotech partner BioNTech, revealed exciting news about its COVID-19 vaccine.
Details of the Price Plunge
Between the hours of 12:00 pm and 3:00 pm UTC, Bitcoin went from a respectable $15,800 to a low of $14,815, based on TradingView data. Although Bitcoin experienced a slight recovery by publication, settling around $14,908, the digital currency’s volatility remains a hot topic of conversation.
Vaccine News That Shook Markets
Pfizer excitedly shared that its COVID-19 vaccine showed roughly 90% effectiveness in trials involving over 43,000 participants. However, before the confetti can fall, it’s worth noting that the vaccine is still waiting for its thumbs-up from the U.S. Food and Drug Administration (FDA). Pfizer is gearing up to submit for Emergency Use Authorization (EUA) soon, with high hopes for safety milestone achievement by the third week of November.
Bitcoin, Gold, and the Broader Market
As Bitcoin cried into its digital pillow, traditional financial markets responded with gusto! The S&P 500 reportedly soared almost 4% in reaction to the vaccine news. Contrarily, gold—often viewed as a stable store of value—took a hit, diving over 5% in a frenzy of selling.
Ripple Effects on High-Profile Companies
The vaccine news didn’t only rattle Bitcoin and gold; it also sent shockwaves through companies that thrived during lockdowns. Video conferencing giant Zoom saw a drop of roughly 19% in stock price, and Netflix, perhaps sensing the end of binge-watching, fell by nearly 10%. Even heavyweight Amazon wasn’t spared and slid more than 5% down the financial slide.
Will Bitcoin Make a Comeback?
Despite today’s steep drop, many Bitcoin enthusiasts remain optimistic. Comparisons are being drawn to the initial drops in March during the onset of the COVID-19 pandemic, after which Bitcoin rebounded dramatically. Will history repeat itself? Only time—and perhaps a little less unpredictability—will tell.
