How Bitcoin Is Reacting to Pfizer Vaccine News

Plus spot exchange volume down from Sept to October

Happy Monday, Blockfolians

The Lede

This week in markets started with an absolute bang, as the S&P500 and Dow Jones Industrial Average raced to new all time highs. It wasn’t just about emerging clarity in the US presidential elections.

No, the specific catalyst was an announcement from Pfizer that their vaccine was performing better than expected at trial, blocking up to 90% of COVID-19 cases.

Consequently, stocks that had been hampered by long term demand changes such as airlines and cruise lines started crushing, while work-from-home related stocks suffered.

Safe havens like gold and bitcoin quickly took a dip, although it would be worth exploring this a little more.

The massive money expansion in this country hasn’t caused runaway inflation because it has been pared with low money velocity. In other words, people who are nervous about where the next paycheck is coming from aren’t going out spending it.

If that sentiment shifts rapidly thanks to something like a vaccine, inflation hedges could be back on the menu!

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Highly Relevant Reading


Community Commentary

A great bitcoin take from a famous value investor
This is going to be a debate right up to inauguration day (and honestly, maybe beyond)

A Really Big Number We Should Be Paying Attention To

$125.8B

That’s legitimate spot volume on crypto exchanges in October - down 25.8% from September, according to The Block


Final Thought

Good offer!