2021-9-23 20:58 |
This week’s price movements for Bitcoin (BTC), gold, and our stock pick Coinbase.
BTCBitcoin (BTC) fared poorly this week, compared to the rest of the month. After establishing itself comfortably above $45,000, BTC traded up to $48,000 by September 9. However, on September 11 and 13, it dropped to $45,000, before reaching back above $48,000 on September 16. Although BTC bounced down to $47,000 on September 18, it wasn’t until September 20, that it really plummeted. By September 21, BTC had reached as low as $40,000, but has since recovered a bit and is trading just above $44,000.
Bitcoin’s price dropped sharply this week because investors began shedding risky assets amid a global equity markets decline. “This sell-off is the continuation of a well-established pattern where traders cash in their riskier assets to cover margin calls or sit on the sidelines until markets calm down and they feel more comfortable going back into riskier positions,” Valkyrie Investments CEO Leah Wald said. “If ever bitcoin had the opportunity to establish itself as a safe haven or as digital gold, with U.S. companies also signaling their earnings calls are going to reveal poor results, now feels like the time.”
GOLDAfter a fairly robust week, the price of gold fell coming into last week and has dropped yet again despite a recovery. Between September 9 and 14 gold traded between $1,785 and $1,805. However, by September 15, it started to trickle down, dropping to $1,745 by September 16. Pushing up to $1,765 on September 17 and 20, it managed to reach $1,780 by September 21, but has since fallen back to $1,745.
Gold stabilized as Federal Reserve Chair Jerome Powell neglected to give any firm dates for the beginning of tapering or raising interest rates at this week’s Fed meeting. But receding fears over the Evergrande crisis limited interest in safe-haven bullion. Gold is considered a hedge against higher inflation and geopolitical uncertainties, but a Fed rate hike would increase the opportunity cost of holding gold, which pays no interest. “Higher rates usually do impact gold negatively, (but)investors will almost have a foot in gold’s door as a precaution given the continuing bubble in the equities and bond market,” said Vincent Tie, sales manager at Singapore dealer, Silver Bullion.
COINSeptember has not been a good month overall for Coinbase. After achieving $260 per share on September 8, it began to fall from September 9, reaching roughly $242 by September 13. It channeled between there and $250 until September 17. COIN then gapped down on September 20 to around $235. It has since risen again and is now trading around $240.
Coinbase has dealt with some issues over the past few weeks. Earlier this month, the Securities and Exchange Commission (SEC) issued a warning against Coinbase. It threatened to sue the cryptocurrency exchange if it followed through with the launch of its Coinbase Lend product. The product would enable users to earn interest on their crypto deposits, which the SEC feels makes it a security. As a consequence, Coinbase eventually decided to forego offering its Lend product. Despite this setback, Coinbase is still looking to expand and is seeking to fill positions enabling it to achieve its goals.
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The post Gold, Stocks, and Bitcoin: Weekly Overview — September 23 appeared first on BeInCrypto.
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