What Impact Will The Moderna Vaccine Have on Cryptocurrencies Like Bitcoin in The Long Run?
The COVID-19 vaccine being developed by American biopharmaceutical company Moderna has shown about 94.5% effectiveness in preventing COVID-19 in humans.
According to a report from CNN, the news about the efficacy of Moderna’s vaccine was revealed by the Data Safety and Monitoring Board, an independent panel analyzing Moderna's clinical trial data.
Following the results of Moderna’s vaccine efficiency, the global stock market has responded with a bullish run. The S&P 500 Index, Dow Jones Industrial Average, and the Nasdaq Composite all saw positive surges. Non-US markets including the FTSE 100 Index also saw positive gains following the clinical data results from Moderna’s clinical trials.
The overall surge in the stock markets has also impacted cryptocurrencies including Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) among others. While these are temporary gains, the presence of a vaccine will also have its long term impact on cryptocurrencies. But how?
Vaccine Presence and Long Term Impact On Crypto
The United States now has two companies with vaccines that have reported more than 90% efficiency in clinical trials to prevent COVID-19. The companies include Pfizer Inc. and Moderna Inc. Both firms are currently seeking Emergency Use Authorization (EUA) from the Food and Drug Administration (FDA), the success of which will see the vaccines being administered in America and subsequently other nations.
The presence of a vaccine may result in lifestyle routines reverting back to normal. Many people who have lost their jobs will likely return back to work as the most impacted industries such as the travel industry will begin to see an uptick in patronage.
This return to normalcy in the long term will eliminate the need for more stimulus checks, an economic strategy put in place by world governments to support small businesses and those who lost their jobs. As it was generally believed that the printing of more money for use as stimulus packages will cause inflation which is bearish on fiat currencies and bullish on Bitcoin and digital currencies, the absence of stimulus may potentially reverse the trend.
Bitcoin also gained recognition as a good hedge for inflation during the pandemic. With a recovering economy made possible with a vaccine, this favorable tag on Bitcoin may not be as pronounced. In all, some of the factors that have favored and contributed to the institutional adoption of cryptocurrencies and altcoins may be impacted by the emergence of COVID-19 vaccines.
However, if the pandemic has taught investors anything, it would be that it is crucial "to save for a rainy day." Bitcoin as a hedge has been incredibly effective during the coronavirus pandemic, and that may serve to classify the digital asset alongside gold as a safe-haven asset, once and for all.
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