This week’s price movements for Bitcoin (BTC), gold, and our stock picks, Visa and Coinbase.
BTC
Bitcoin seems to have fared middling-well over the past two weeks, as it achieved $50,000 again for the first time since May but seems to have met resistance at this point since then. Trading around $45,000 on August 19, BTC then rose to $47,000 by the next day, $49,000 the day after that, finally surpassing the $50,000 mark on August 23. Having hit a target price point, BTC naturally met with selling pressure there and traded down to $48,000 by August 25, where it briefly spiked back to $50,000, before going down to $47,000. Although it has channeled between there and $49,500 since then, it is currently trading back around $50,000.
Despite the return to form, Bitcoin’s August rally didn’t attract many new buyers. The cryptocurrency’s funds had outflows of $61 million in August, according to data from asset manager CoinShares, and outflows in 14 of the past 16 weeks. Momentum Structural Analysis analyst Bret Oliver wrote that bitcoin’s trading pattern since its April high resembles what happened after the 2017 peak. This downturn doesn’t necessarily have to last as long as 2017, he said, but he expects the market will be stuck in a range after this year’s selloff before building a new base.
Gold
Gold had a solid past pair of weeks. From August 19, gold was trading around $1,780. It continued trading around there until August 23, when it jumped to around $1,804. Although it remained there briefly, by August 25 it had started trickling down reaching around $1,784 by August 26. Then on August 27, gold spiked again, this time to around $1,820, where it has been trading for the past week.
Gold prices inched up as the dollar remained weak, although they traded within a tight range ahead of US August non-farm payrolls data considered crucial for the Federal Reserve’s tapering strategy. “We’ve seen a little bit of a weaker dollar that has helped push gold prices higher since the end of last week. At the moment, gold remains very much a case of ‘buying on the dips’ and it has managed to hold above $1,800/oz,” said Michael Hewson, chief market analyst at CMC Markets UK. “Gold prices need to try and push towards highs we saw in August, around $1,830, but for the time being, it’s probably not going to see much movement ahead of the payrolls numbers.”
VISA
Overall, Visa did not have a good August. After achieving an all-time high of $250, V proceeded to fall, reaching $234 by August 3. From there, it rebounded to $242, however, again falling, this time to $230 by August 12. It proceeded to channel between there and $236 until today when it plummeted to $223.
Earlier this week, Visa released its anticipated non-fungible token (NFT) whitepaper, which praises the digital assets as a “promising medium” and continues its crypto positivity. The financial services giant recently released its overview on the NFT industry in a whitepaper. The write-up of non-fungible tokens praised the digital assets and provided an outline of the technology.
COIN
Meanwhile, Coinbase finished the month of August better than it started it. After starting the month around $240, it quickly fell to $230. But from there it took off, rising past $256 by August 5, $280 by August 9, and up to $294 on August 11. However, it fell from there, gapping down to around $264 on August 12, and falling further below $240 by August 19. From there it bounced back again, trading just about $255. Then, after falling below $50 on August 26, it again rebounded and is trading around $270.
Earlier this week, Coinbase acknowledged a false security message that was sent to 125,000 customers, which said their securities settings changed. In a comment to CNBC, the cryptocurrency exchange said the message was the result of an internal error. The company stressed that it was not a hostile actor. “All of a sudden, the system just started sending stuff like a bug in the system, but it was not a malicious or third party error,” a spokesperson commented.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
