This week’s price movements for Bitcoin (BTC), gold, and our stock pick Nvidia.
Bitcoin (BTC) has had a dramatic month of November, hitting a new all-time high, but is currently down. As of November 5, BTC had been trading at just above $60,000. But on November 6 trended upward, hitting successive all-time highs on November 9 and 10. However, selling pressure made BTC drop from there, but it consolidated around $65,000. Although a bump brought it to $66,500 by November 15, it proceeded to tumble, falling below $60,000 for the first time this month on November 16. It is currently trading just below $59,000.
“The fall below 60,000, puts (Bitcoin) below the 62,000 support level, slightly into the ‘short term’ bearish zone,” said Defiance ETFS CIO Sylvia Jablonski. “The next key support level is 58,000, but I think it gets bought up here, and demand driven prices will begin to play out to the upside.” However, a correction could get severe if it fell through $58,000, according to Craig Erlam, senior market analyst at online broker Oanda. “This is roughly where it found strong support at the end of October and given how much it’s struggled to make major strides higher since, it could be the catalyst for a deeper correction.”
Gold has had an overall prosperous month of November. Trading around $1,760 on November 3, the price of gold has nearly only increased since then. By November 4 it jumped to around $1,790, by November 6, $1,820, and by November 10 as high as $1,868. Over the next week, it gradually trended upwards past $1,870 by November 16. It has however dipped since then and is now trading around $1,860.
Gold prices edged down because investors remain concerned over how fast the US Federal Reserve will taper its monetary stimulus and raise interest rates following the strong inflation data coming out of the United States. Additionally, a weaker dollar has made gold more attractive for buyers holding other currencies. “We’ve had a decent rise to the upside and yields are a bit firmer so that could be actually pushing gold prices down,” said Michael Hewson, chief market analyst at CMC Markets UK.
Nvidia has seen its fair share of bumps over the month of November. Starting out the month around $256, by November 2 it had risen to $264, before gapping up on November 4 eventually $310 by November 5. Apart from a spike past $320 on November 9, NVDA trended down, reaching $292 by November 17. However NVDA has now gapped up to around $320 in its opening hour of trading.
In its financial results for the third quarter fiscal year 2021, Nvidia showed a steep decline in sales for its crypto mining chips introduced in March. On the whole, however, the company saw healthy increases in revenue. The Cryptocurrency Mining Processor (CMP) was first announced in February 2021 and was aimed specifically at mining Ethereum. However, the unit has not fared well, as sales declined by 60% from quarter to quarter, with revenue totaling $105 million. The company even states that it expects sales to decline to “very negligible” in the fourth quarter.
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BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.