This week’s price movements for Bitcoin (BTC), gold, and our stock picks AMC and Canoo.
Bitcoin (BTC) performed much better this week than it has in the last month or so. After recovering a bit towards the end of last week, BTC’s price rose back up to $38,000 by June 10. From there, it fumbled a bit going into the weekend, falling back down to $35,000 by June 13.
However, BTC spiked back up to $39,000. The next day, it even pushed past the $40,000 price point. Although, by June 16, it dipped back down to $39,000, where it is currently trading.
Bitcoin saw that boost earlier this week, due to another tweet from Elon Musk. The tweet was a reply to a news article, which Elon called misleading. He also reaffirmed that Tesla would again accept Bitcoin as payment once it was mined with mostly clean energy.
Although Musk had earlier included this caveat in his original announcement, Bitcoin experienced a bounce at this statement.
Whereas digital gold had a solid week overall, the price of physical gold seems to have plummeted. By the end of last week, gold had breached $1,900 but was hovering just below on June 9 and 10. Then on June 11, gold picked up, then seemed to hit resistance at $1,900, tumbling down over the course of the day to $1,870.
The slide continued on June 14 to $1,850, before being boosted back up to $1,870. By June 15, it fell to $1,860, then at the end of June 16, the price of gold bottomed out, falling down to $1,810.
Although it recovered momentarily going into the next day, the price fell even further on June 17 to $1,780, where it is now trading.
The reason gold slipped below the $1,800 level is because the Federal Reserve signaled earlier-than-expected interest rate increases. A majority of 11 Fed officials projected at least two quarter-point rate rises for 2023, despite pledging to keep policy supportive for now to encourage a jobs recovery.
Additionally, “higher interest rates in the U.S. – while other major central banks probably are going to wait longer with changing monetary policy – has strengthened the dollar. So it’s a double whammy for gold,” said Quantitative Commodity Research analyst Peter Fertig.
Meanwhile, AMC Theaters (AMC) had a good week overall. Although AMC had spiked above $70 earlier this month, towards the end of last week it was trading at $52. From there, it fell a bit to $42 on June 10, but seemed to pick up some bullish momentum the following day. On June 14, the stock price gapped back up to $52, and pushed even higher, reaching past $63 by June 15.
However, selling pressure returned at that point, knocking it back down to $52. It is currently trading around $56.
One of the “meme” stocks favored by Reddit trading group WallStreeBets, AMC has recently seen a great deal more volume and volatility. “In some of the meme stocks that we’ve seen, or stocks that have a high level of retail participation, the vast majority of order flow can trade off of exchanges, which is problematic,” said Stacey Cunningham, president of Intercontinental Exchange.
Having recently joined the ranks of “meme” stocks, electric vehicle maker, and Tesla competitor, Canoo (GOEV) also had a volatile week. Starting at just above $9 on June 8, the price spiked to nearly $12 before inching back down. The next day it managed to gap up to $12 before trickling down even further, reaching about $9.50 by June 10. Although it bumped up a little later that day, it largely stayed around this price going into the following week.
However, by June 15 GOEV experienced another spike, this time past $11, before falling and settling around $10 where it is currently trading.
Canoo went public in late December, but has dropped nearly 50% of its value since then. A comment Tuesday on r/wallstreetbets that Canoo “can be a tremendous play for both long and short term gains” probably got the ball rolling. This came along with an announcement from the company that it would hold an investor’s day on Thursday.