Changpeng Zhao, CEO of Binance cryptocurrency exchange, stated in a statement today that Covid-19 will be defeated. CZ addressed the possible effects of this on Bitcoin (BTC), and actually touched on an issue that many investors are curious about. So, how will the newly announced vaccine gospel meet the expectations and end Covid-19 affect the BTC price?
Covid-19 process benefited Bitcoin the most
After the World Health Organization declared Covid-19 an epidemic, the price of Bitcoin dropped to the $ 3,000 band. While everyone thought that BTC was coming to an end in March 2020, when all assets saw the bottom, the opposite happened. Bitcoin continued to rise, albeit slowly, and broke the all-time record.
Binance CEO Changpeng Zhao also reminded Bitcoin’s journey from $ 3,000 to $ 19,000 in almost 8 months. People were saying, “Why isn’t Bitcoin a safe-haven asset?” Expressing that he directed his questions, CZ revealed how the situation is changing rapidly.
We will beat COVID19.
Between March when COVID19 impacted all financial markets, to now the vaccine emerges. #bitcoin went from $3,000 to $19,000 in mere 8 months.
— CZ Binance (@cz_binance) December 2, 2020
What direction will the Bitcoin price go if the epidemic ends?
So how will the Bitcoin price react if Pfizer’s Covid-19 vaccine, which is approved by the UK today, completely erases this virus from our lives? In fact, the BTC price is Pfizer Inc. and BioNTech was on the rise with the vaccine announcement. BTC, which rose from $ 15,400 to $ 15,800 at a time, accelerated its climb with the US stock markets. BTC, which regressed to $ 15,500 again in the continuation of this increase, did not change its place in the vaccine news of another company.
The news of Moderna’s vaccine, announced on November 16, 2020, did not move the BTC price. Famous economist Alex Krüger emphasized that assets such as Bitcoin, European stock markets and assets with low market value will be positively affected in a statement at that time.
The arrival of the vaccine and the return of life to normal has the potential to increase the orientation to alternative assets such as BTC. However, stopping the stimulus packages of the USA and other leading economies may end the difficult situation of fiat currencies. This will not be positive for BTC either.
Virus accelerated the process of digital currencies
Surprising the markets with the support of Bitcoin and crypto money, PayPal CEO also emphasized that the Covid-19 outbreak actually benefits the industry. Dan Schulman stated that the epidemic positively affected the development process of digital currencies and enabled the upward trend to be seen in six months, while it is expected to be seen in three to five years.
Binance CEO also stated that he joined Schulman.
Schulman, Paypal’s CEO just suggested that the COVID-19 acted as a catalyst for digital currencies, saying the timeframe for these trends has moved forward from three to five years, to five to six months. What do you think CZ?https://t.co/16cjZtqiKg
— Bloqport (@Bloqport) December 2, 2020