Bitcoin was trading modestly higher during the New York lunchtime session as US equity markets rallied to a new high, fueled by hopes over a potential coronavirus vaccine.

The Donald Trump administration earlier admitted that it is considering to bypass US regulatory standards to speed-up the development of an experimental vaccine. It is being developed by UK’s Oxford University and AstraZeneca.

Meanwhile, the US Food and Drug Administration authorized the use of the plasma taken from recovered coronavirus patients to treat the ones with severe medical conditions.

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The news fueled risk-on optimism among investors on Monday. While the S&P 500 posted an intraday high of 3,426.99, up 0.7 percent, the Dow Jones and Nasdaq Composite surged  0.88 percent and 0.37 percent, respectively, to their record highs.

On the other hand, safe-havens suffered. The leading hedging asset, Gold, continued to play defensive after topping above $2,000 in early August. On Monday, its spot rate fell 0.53 percent to circa $1,930 an ounce.

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Bitcoin maintains intraday gains despite weaker risk-off sentiments. Source: TradingView.com

Bitcoin fared better by establishing an intraday high at $11,823 during the European session. The cryptocurrency pared gains as it entered the New York hours, plunging towards $11,732 by lunchtime. Nevertheless, it was still maintaining its gains at 0.7 percent above zero.

Jackson Pole Meeting

Despite their lesser-than-expected intraday performance, both Bitcoin and gold to manage to sustain above their respective technical support levels. Traders preferred to keep these assets higher ahead of the annual Jackson Pole meeting of monetary policymakers this week.

Economists expect Jerome Powell, the chairman of the Federal Reserve, to unveil details of their management of the coronavirus-induced financial crisis. The US central bank has so far injected trillions of dollars of liquidity into the economy via its open-ended bond-buying program and near-zero lending rates.

Minutes from the Federal Open Market Committee’s meeting in July 2020 noted that the US economy would recover at a slower-than-expected rate. Nevertheless, the committee pledged to keep supporting the US economy with its quantitative easing policies.

Bitcoin traders perceived the Fed’s statement as a signal of a weaker US dollar.

Atop that, some of the US central bank’s top officials also encouraged inflation rate hitting beyond their benchmark target of 2 percent. That further improved Bitcoin’s long-term bullish outlook as a hedging asset against the lower-yielding dollar and non-yielding Treasury bonds.

Bitcoin Adoption Booms

Unlike the fiat money, Bitcoin comes with a pre-developed scarcity of 21 million tokens. Many traders use the cryptocurrency’s controlled issuance as one of the major reasons behind their long-term bullish bias.

Christopher Gimmer, the co-founder of Ottawa-based Snappa – a graphic designing portal, on Monday announced that they were reallocating 40 percent of their cash reserves to Bitcoin. The firm’s complaint was simple: their bank was offering them poor rate of interest on their savings.

“Our bank slashed the interest rate on our “high interest” savings accounts to 0.45% earlier this year,” wrote Mr. Gimmer. “This means that the purchasing power of our Canadian and U.S. dollars is actually decreasing after adjusting for inflation.”

“Fortunately, I believe we now have a far superior savings technology available to us. That technology is Bitcoin,” he added.

Earlier, public-traded company MicroStrategy and billionaire investor Paul Tudor Jones had also invested in Bitcoin. They, too, feared fiat devaluation owing to the Federal Reserve’s infinite quantitative easing program.