Positive Coronavirus Vaccine News Plunges Bitcoin Price By $1,000: Here's Why

The price of Bitcoin and gold dropped Monday amid promising news about a COVID-19 vaccine.

Bitcoin went as high as $15,860 but it soon dropped approximately $1,000, touching $14,800 before closing at $15,342 Monday. The decline came after pharmaceutical companies Pfizer and BioNTech announced that their COVID-19 vaccine proved 90% effective in clinical trials.

Immediately after the announcement, Bitcoin started declining before bouncing back at around $14,800, Cointelegraph reported.

Pfizer said the drug was tested on 43,538 subjects and the company was planning to seek emergency use authorization from the Food and Drug Administration.

Traditional markets were revitalized following the news, with the S&P 500 increasing by almost 4% immediately upon opening.

As a non-correlated asset, Bitcoin, which thrived on economic uncertainty, suffered losses. Gold, to which Bitcoin is often compared as a store of value, fell 5%. Though Bitcoin appears to have already bounced back, gold has yet to regain from Monday's decline.

Another recent development that had an impact on Bitcoin was billionaire Stanley Druckenmiller's comment that he had purchased some Bitcoin. "Bitcoin could be an asset class that has a lot of attraction as a store of value to both millennials and the new West Coast money," he told CNBC.

Tech stocks performed well during the pandemic, witnessing an increase in value, as more people worked from home and preferred online deliveries. Following the news of the vaccine, many of these stocks, including Netflix, Zoom and Amazon, sharply fell Monday.

With Bitcoin currently hovering at around $15,300, analysts expect the benchmark cryptocurrency to not be impacted by the vaccine news in the long-term. It has already stayed above $15,000 in four of the last five days. The longer the $15,000 level is sustained, the more likely it will become a key support in a future uptrend.