Gold, Stocks, and Bitcoin: Weekly Overview — April 29
This week’s price movements for bitcoin (BTC), gold, and our stock picks, Marathon, Riot, and MicroStrategy.
After falling from its perch above $60,000, last week, bitcoin (BTC) continued to tumble going into last weekend. On April 23, BTC’s price fell below $50,000, reaching about $47,500. It pushed back above $50,000 over the next two days, before falling down to nearly $47,000.
However, from that point, going into April 26, buying pressure brought it back around $54,000. BTC traded above $55,000 the next two days, but it has since fallen to around $54,000, where it is currently trading.
BitPay CCO Sonny Singh attributes BTC’s fall to a “Coinbase hangover.” However, he attributes its recovery to the perspective of institutional investors.
“A lot of institutions got in around $40,000-$50,000 in the last couple of months,” he said, ”so they saw anything below $50,000 as a good price and buying opportunity.” On the other hand a report from Forbes portends an uncertain near-term future for BTC.
It said that falling open interest in BTC futures in early March indicated that a correction was on the horizon. It also said that the Coinbase exuberance that pushed BTC to its all-time high, was a temporary reprieve. According to the report, interest in BTC futures has yet to return.
After last week’s overall positive trend, gold had a mediocre, if not negative performance. After broaching $1,797 on April 21 and April 22, selling pressure brought it down to $1,776. It experienced a spike back up to $1,796 the next day, before falling even harder to $1,770.
From April 26, it channeled mostly between $1,772 and $1,784, before sinking down to $1,763, on April 28. However, from there, it shot back up to nearly $1,790, but then sank hard down to $1,756. It is currently trading around $1,768.
Gold fell as U.S. Treasury yields jumped on upbeat U.S. economic data. “Rising bond yields and upbeat risk appetite is denting the safe haven metal,” said Kitco Metals senior analyst Jim Wyckoff. He said:
“We are still in a near term price uptrend on the daily charts, however that price uptrend now is in some jeopardy. If prices can’t push above $1,800, let’s say in the next week or so, then prices will probably grind back sideways to lower.”
Goldman Sachs has released a study headed up by analyst Ben Snider on stocks connected to crypto and blockchain. Specifically, stocks that could see a sharp spike if BTC prices take off again.
The top three on their list are our stock picks for this week: Marathon Digital Holdings, Riot Blockchain, and MicroStrategy. While they have all traded similarly to BTC and are somewhat dependent on it, each has their own minute variations.
From the beginning of March, RIOT seemed to advance the most along BTC’s trajectory, seeing a 50% gain in value. However this fell back down along with the rest towards the end of the month. Then, towards the beginning of April as BTC made modest gains, MARA skyrocketed up seeing a nearly 80% gain in its value by April 5.
This didn’t last, nor coincide with BTC’s all-time high on April 15. At that point, sank down to a 60% gain, as the other two experienced more modest gains around 30%. However, from here all three tumbled down as BTC experienced a correction following Coinbase’s listing. Although MARA’s and MSTR’s gains are marginally better than they were at the beginning of March, like BTC, RIOT is down 7.5%.
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