Here’s Why Bitcoin and Gold are Getting Hammered while The Stock Market Hits New All-Time Highs

Interesting start of the week: BTC shaky as it goes below $15k with precious metals getting hit the hardest.

On Monday, US markets saw one of their strongest openings in months on the back of progress on the COVID-19 vaccine and Democrat Joe Biden’s electoral victory.

Markets soared even before they opened and after that, it was all-time new highs.

S&P 500 made a new peak at 3,628 with a 1.3% move today, beating early September’s record of 3,580.

Much like the equity market, Dow Jones hit a new high at 29,632, with a 1.8% upwards move while tech-heavy Nasdaq fell short of hitting its high.

Not just US stocks but global stocks also surged on Monday after drugmaker Pfizer said that early data from its coronavirus vaccine shows it is more than 90% effective.

France's CAC 40 jumped 7%, Germany's DAX climbed 5.4%, and the FTSE 100 in London spiked 4.7%.

Even the price of Brent crude oil vaulted nearly 8% to $42.45 a barrel.

Unlike the mania seen in the stock market, gold crashed hard. The precious metal took a dive to $1,850, with a drop of almost 5.8%. Much like the yellow metal, silver had a bad time today, falling 9.2% to $23.6.

The US Dollar index meanwhile only oscillated between 92 and 93.

When it comes to Bitcoin, initially, it held strong only to fall 6.5% on Bitstamp. Today, BTC moved between the range of $14,824 and $15,854. The leading digital asset remains 24% away from its ATH.

“This volatility is just fast money funds that play BTC as a higher beta GOLD dumping on vaccine news. The players that enter on behalf of the longer-term thesis for Bitcoin are not changing their positioning,” noted trader Cantering Clark.

At the time of writing, BTC/USD has been trading around $15,200 in the red (-2%) with $3.81 billion in volume.

BTC's downward movement had altcoins trailing down as well, with top cryptos down between 3% to 8%.

Before the vaccine news even broke out, stocks were already rallying as investors reacted positively to political certainty following Joe Biden’s victory. During his victory speech on Saturday, Biden announced his plans to assemble a coronavirus task force to help curb the virus's spread.

Coronavirus cases are rising at an alarming rate in the US, forcing some states to shut down parts of the economy. Recently, several major countries in Europe have imposed nationwide lockdowns again.

Bitcoin (BTC) Live Price

1 BTC/USD =16,822.4682 change ~ -2.89

Coin Market Cap

312.15 Billion

24 Hour Volume

47.23 Billion

24 Hour Change

-2.89

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AnTy
AnTy
AnTy has been involved in the crypto space full-time for over two years now. Before her blockchain beginnings, she worked with the NGO, Doctor Without Borders as a fundraiser and since then exploring, reading, and creating for different industry segments.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

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