Gold, Stocks and Bitcoin: Weekly Overview — August 12

This week’s price movements for Bitcoin (BTC), gold and our stock pick, BlackRock.

BTC

Bitcoin has held to a relatively narrow range for the past two weeks. Trading at around $24,000 on July 29th, BTC briefly rallied up to $24,500 on July 30th. Into August, BTC traded down, falling below $23.00 on August 2, before recovering to $23,500 on August 3, and then falling further to $22,500 on August 4. From August 5, BTC recovered, and to despite struggles in the following days, BTC reached $24,200 on August 8. BTC fluctuated dramatically over the next few days, dropping to $22,800 by August 10th, before soaring to nearly $25,000 on August 11th. to $24,000.

Bitcoin came close to $25,000 after the release of July inflation data. Inflation eased slightly from historically high levels in July, which then led to a rally in the stock and crypto markets, but experts remain skeptical about what these latest price increases could mean in the long term. “The Fed is still tightening and inflation is still high, so we can’t be convinced of a reversal in the market at the moment,” said Marcus Sotiriou, a market analyst at digital asset broker GlobalBlock. “But the fact that [Fed Chairman] Jerome Powell has started to say that the rate hikes have had a noticeable effect signals to me that we are in the later stages of this bear market, which we are about eight months into.”

GOLD

Gold trended higher over the past two weeks. Gold was trading at $1,755 on July 29th, rising in fits and starts to $1,785 by August 2nd. Although it dropped from there back to $1755 the next day, the day after it had risen again, reaching $1795 by August 5th. again at $1,775, where it opened on August 8 before rising again. Since August 9, gold has traded between $1,785 and $1,800 and is currently around $1,795.

Despite falling on Friday, gold prices were still on course for a weekly gain as a general weakness in the dollar offset pressure from a rise in bond yields and expectations of further rate hikes by the US Federal Reserve. “A slight easing of inflation has helped gold’s rally to $1,800. But risky assets were quickly preferred and the gold rally stopped. If risk appetite eases over the next couple of weeks, that could support a move above $1,800, OANDA analyst Craig Erlam said.

BLK

BlackRock stock looks set to rise this summer. At the beginning of July, BLK was trading around $610. It rallied slightly to $620 over the next few days, slowly falling to nearly $590 by July 14. After an earnings report, however, enthusiasm for BLK returned and the stock has been trending upward since then, except for minor dips to $620 on July 26 and then $690 on August 9. It is currently trading around $745.

Earlier this week, BlackRock announced a partnership with Coinbase, linking its Aladdin investment technology platform with the exchange. This will enable BlackRock’s institutional clients to trade cryptocurrencies, starting with Bitcoin. The Aladdin network is widely used in fund management to connect asset managers, insurance companies and banks to markets, which will also now be able to use it to manage their Bitcoin exposures. Shortly thereafter, BlackRock launched a spot bitcoin private trust open to institutional inventions in the United States.

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