Negative market sentiment coincides with the news of the vaccine’s lack of effectiveness against the new species of Corona
The CEO of Moderna, a company that makes the Corona vaccine, has said that existing vaccines are less effective against the new species of Corona virus. Following the news, the sentiment of financial market traders became negative again, and as it turns out, some investors are transferring their assets to exchange offices.
to the Report Hours ago, after the CEO of the pharmaceutical company Moderna announced that the vaccine was less effective against the new strain of the corona virus, Omicron, the sentiments of financial market traders became negative again.
Bitcoin fell 2.5 percent to a low of $ 56,000, followed by a 1.2 percent drop in the S & P500. The Australian dollar fell against its US dollar to a 12-month low of 0.7092, and the yield on 10-year US Treasury bonds fell to 1.47% on Friday as demand for investment in this class of assets increased.
In an interview with the Financial Times, Moderna CEO Stéphane Bancel said the existing vaccines appeared to be less effective against the new species of coronavirus. Bensell says it could take months to produce a vaccine against the omicron species.
Moderna’s CEO’s remarks have rekindled concerns about the Corona virus pandemic and halted the recovery process that began earlier this week in the high-risk asset market. Feelings of uncertainty returned to the digital currency and stock markets yesterday after it was reported that patients with Omicron species in South Africa had very mild symptoms. In addition, US President Joe Biden said the discovery of the new species could be “cause for concern”; But he should not panic and deny the rumors of resumption of quarantine and re-imposition of restrictions, which also have a negative impact on the country’s economy. On Friday, the price of Bitcoin fell 9 percent to $ 53,600 after the World Health Organization confirmed the discovery of a new corona.
Market participants agree that US officials will support the price of various assets without any restrictions if the situation worsens and moves towards the resumption of quarantine. However, such a move could put the US government and central bank in a difficult position. Given that inflation is spreading faster than the international community expects, the resumption of quarantine and such measures could lead to stagflation; A period that will be accompanied by low economic growth and rising commodity prices. Although bitcoin is considered a tool for storing value, in such cases its price will be as vulnerable as other assets sensitive to economic growth, such as stocks.
Some digital currency market investors are worried about falling prices and are apparently shifting their assets to exchanges. Glassnode data show that centralized digital currency exchanges have received more than 24,950 bitcoins in the last four days, and the inventory of these exchanges has also increased. Investors usually transfer their assets to exchanges when they intend to liquidate it.
Although the increase in the bitcoin inventory of exchanges is not very noticeable, the continuation of this trend may be a sign for a deeper price correction. Bitcoin prices plummeted in May as the decline in digital currency exchanges stalled.