Crypto Markets Pull Back Slightly Again, Why?

Multiple factors from both the macro market and within the crypto industry have contributed to the current market downturn, including Pfizer announcing positive results from its COVID-19 vaccine trial and certain crypto whales starting to sell Bitcoin.

According to the Associated Press, pharmaceutical giant Pfizer announced that the third phase of its COVID-19 vaccine trial is progressing smoothly, and its vaccine has been proven to be 90% effective in preventing the new coronavirus. Currently, Pfizer has tested the vaccine on 44,000 participants. If it proves effective, the next step will be for the U.S. Food and Drug Administration to test it before approving large-scale production and sales.

The positive news on the response to the epidemic triggered a rise in the US dollar and US stocks, while correspondingly, the prices of hedge assets such as gold and Bitcoin fell.

Michael van de Poppe, a trader at the Amsterdam Stock Exchange, said that since gold and other stores of value such as Bitcoin are priced in U.S. dollars, the price of Bitcoin may fall along with gold when the dollar recovers.

Data from crypto data analysis company CryptoQuant shows that crypto whales are selling Bitcoin. Currently, the price of Bitcoin is close to the resistance level below $16,000. Although long-term investors will not be affected for the first time, some crypto whales are starting to sell.

Meanwhile, data from crypto analysis firm Glassnode shows that Bitcoin miners have sent a large amount of Bitcoin to exchanges in the past 24 hours. As the price of Bitcoin hovers above $15,500, these miners are also likely to sell some of their Bitcoin to lock in profits.

Despite this, some investors in the market still favor Bitcoin. According to BitPush, JPMorgan Chase wrote in a recent report that institutional investors such as family offices prefer Bitcoin to gold.