Bitcoin may have conquered even more space as a value reserve, surpassing even the dollar.
The end of 2020 is being a very emblematic moment for Bitcoin, marking a new price record on which the next few years will be based or, at best, the beginning of a high to even higher levels. We are still having good signs of currency appreciation and the announcement of the Oxford vaccine approval in the UK increasing investors‘ sense of greed and risk.
At a time when the market has a higher feeling of risk, we can expect more and more purchases from investors wanting to make profits from the currency appreciation.
While all vaccine news helps the market, the vaccine produced in the UK has some advantages over location and distribution.
Hani Redha, a diversified portfolio manager at PineBridge, was quoted by the NewsBTC website as saying:
„This is a very important development in the global fight against the pandemic. Unlike its counterparts, the AstraZeneca-Oxford vaccine will have more doses to transfer between developing countries with relatively higher temperatures. Just the number of doses and the ease of distribution in developing countries make it very important“.
With this, the positivism of the market in relation to the assets of greater exposure to risk, made investors seek profits with Bitcoin, making the balance between Fear and Greed become even more prone to green.
The recent index of Fear and Greed shows that Bitcoin is in the area of Extreme Greed.
Dollar continues to lose and Bitcoin on the way to US$ 30,000
The US Dollar Index, which shows the relative strength of the dollar against other currencies, fell to its lowest since April 2018. This put the dollar to a low with the currency not a good reserve value.
This is an interesting fact because one of the reasons for Bitcoin being so valued is that it could be a value reserve during the crisis and the insecurity of the future (which is true). But the dollar has always shown itself to recover with news about vaccines and the possibility of the end of this health crisis while other assets lost their breath.
This shows that Bitcoin may have conquered even more space as a value reserve, surpassing even the dollar.
In the medium and long term, this is a positive feeling for the cryptomoedas. With the recent increase on the market entrance flow, Bitcoin doesn’t show any resistance until the US$ 30 thousand.