Crypto rating agency Weiss Ratings is reporting that the anticipation of a post-Covid world is serving as fuel for Bitcoin’s ascent while other safe-haven assets like gold are losing their luster.
In a recent post, Weiss analysts Juan Villaverde and Bruce Ng assess market reactions after pharmaceutical giants Pfizer and Moderna announced they have working vaccines against Covid-19.
Weiss notes that investors are pricing in the possibility of a viable vaccine as they begin to rework their portfolios and ignore safe-haven and big-tech assets that pumped during the pandemic.
As gold and bonds fell victim to the market reshuffle, Bitcoin was able to maintain its value and even flourished under the assumption that the world will undergo a “speedy post-pandemic recovery,” says Weiss.
“Gold prices have basically been dead-in-the water ever since. Bonds managed to claw back only about two-thirds of their post-Pfizer plunge.
Bitcoin, on the other hand, blasted through $17,000, $18,000 and $19,000 – in short order.”
The US-based analysis firm also highlights the rebound in the altcoin market, showing that its price moved upward with Bitcoin in response to the Pfizer vaccine news.
Villaverde and Ng assert that in a post-Covid world, cryptocurrencies may be the only safe-haven assets and the crypto market is recognizing that possibility.
“Crypto assets stand alone at the intersection of cutting-edge technology and sound money. That makes them the only sure defense against the coming digitization of fiat monies and the reckless monetary policies they will accelerate.
We are fast approaching a post-Covid world where the only viable safe haven will be crypto. Think about it.”
The analysts say that as the world embraces digital assets, the crypto markets will undergo an unparalleled boom.