Crypto rating agency Weiss Ratings reports that the expectation of a post-Covid world is fueling the rise of Bitcoin while other safe havens like gold are losing their luster.
In a newer post OfficeWeiss analysts Juan Villaverde and Bruce Ng assess market reactions after pharmaceutical giants Pfizer and Moderna announced they have vaccines against Covid-19.
Weiss notes that investors are pricing in the possibility of a viable vaccine as they begin to revamp their portfolios and ignore the safe-haven and big-tech assets pumped during the pandemic.
When gold and bonds fell victim to the market reshuffle, Bitcoin held its value and even flourished on the assumption that the world will undergo a “rapid post-pandemic recovery,” says Weiss.
“Gold prices have been basically dead in the water since then. Bonds could only reclaim about two-thirds of their post-Pfizer slump.
Bitcoin, on the other hand, blew up $ 17,000, $ 18,000, and $ 19,000 in a short period of time. “
The US-based analytics firm also highlights the rebound in the altcoin market, showing that its price on Bitcoin has risen in response to Pfizer vaccine news.
Villaverde and Ng claim that cryptocurrencies may be the only safe havens in a post-Covid world, and the crypto market is recognizing that possibility.
“Crypto assets stand solely at the interface between cutting-edge technology and solid funds. This makes them the only sure defense against the imminent digitization of fiat money and the reckless monetary policy that will accelerate it.
We are fast approaching a post-Covid world where crypto will be the only viable safe haven. Think about it.”
The analysts say that with the adoption of digital assets worldwide, the crypto markets will experience an unprecedented boom.