Gold, Stocks and Bitcoin: Weekly Overview — July 29
This week’s price movements for Bitcoin (BTC), gold and our stock pick Coinbase.
BTC
Bitcoin has had its best two weeks in months. Trading just above $19,000 on July 13, BTC started an uptrend from there. Barring a few dips, this continued until June 20, when it peaked at just over $24,000. From there, BTC fell to $22,500 the next day, a downtrend that, apart from a few mild recoveries, reached $20,750 by June 26. The next day, BTC rallied and is currently trading around $23,500.
Bitcoin hovered around $24,000 for most of Friday, hitting a 6-week high as equity markets also recover. “Overall, I think the markets have reacted positively to the Fed’s comments and have arguably priced in most of the rate hikes,” Vijay Ayyar, vice president of corporate development and international at crypto exchange Luno, told CNBC. “There appears to be a lot of liquidity on the sidelines, which is now coming in based on the last few months of consolidation/downward pressure, which is now easing,” he added.
GOLD
Despite a drop, gold came out better in the last two weeks. On July 14, gold traded at about $1,730, before falling to $1,705. Despite rising to $1,710 over the next few days, gold fell to nearly $1,680 on July 21, before rallying to reach $1,735 the following day. Gold then fell back to $1,715 by July 17, when buying pressure returned and pushed it to nearly $1,770 earlier today.
Gold hit a more than three-week high after being on course for a weekly gain, supported by a softer dollar and growing confidence that the Federal Reserve can slow the pace of rate hikes as economic risks deepen. “Gold gains strength from a softer dollar and cooling Fed hike play,” FXTM analyst Lukman Otunuga said, adding soft economic data could continue to boost gold.
COIN
Since the plunge in May, Coinbase has traded between $85 and $45. After making up after profiting, COIN was trading around $60 on May 23rd. It rose from there to nearly $85 on May 31. However, selling pressure returned, sending it back to $54 on June 13. Over the next two weeks, COIN struggled with resistance at $65, failing to break it on June 24th, July 8th, and July 18th. On July 19, COIN finally managed to break through and hit nearly $80 by July 20, but began to decline again after that. It is currently trading around $62.
Coinbase has been featured in several prominent headlines over the past two weeks. For example, the US Securities and Exchanges Commission (SEC) opened a full-scale investigation into Coinbase for allegedly listing securities on its platform. If the SEC considers the 150-plus tokens available to Americans on Coinbase to be securities, the company could be forced to register as an exchange with the authority. Because of the probe, funds controlled by Cathie Wood dumped shares in Coinbase. Three Ark Investment Management funds sold just over 1.41 million shares, worth about $75 million, according to Ark’s daily trading data. Meanwhile, Ark’s flagship Innovation exchange-traded fund (ETF) sold 1.13 million shares. Until the end of June, Ark had been the stock exchange’s third largest shareholder, with approximately 8.95 million shares. The investigation came just weeks after the SEC charged a former employee with insider trading.
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