This week’s price movements for bitcoin (BTC), gold, the S&P 500, and this week’s wildcard stock Coinbase, with bonus stocks Tesla and Amazon.
Bitcoin (BTC) has had an exceptional week. After trading sideways for most of last week, BTC has now seen an almost unbroken upward trend.
Starting from a low point just above $55,000 on April 7, BTC’s price moved steadily upwards over the next two days. Then on April 10, BTC shot up from $58,000 past $60,000, before being pushed nearly all the way back by the end of the day.
For the next two days it struggled with resistance at $60,000, briefly spiking above it once again on April 12. Finally, on April 13, BTC blew past that resistance level all the way to $63,500.
The next day it achieved a new all-time high just below $65,000. Selling pressure has brought it back down to around $63,000.
Last week, gold had a strong upwards swing. This followed through into April 8, peaking at $1,758. However, the following day it proceeded to tumble down as far as $1,730, but recovered a bit going into the weekend.
Upon opening on April 12, gold’s price largely continued its downwards path. It reached a nadir of $1,722 on April 13, before springing up to $1,748 later that day.
It then traded around $1,745 going into the next day before falling to around $1,735. However, on April 15, gold saw almost nothing but buying pressure, pushing it to nearly $1,770 where it is currently trading.
According to the Financial Times, central bank and consumer demand is boosting the gold market. The National Bank of Hungary increased its gold holdings from 32 tonnes to 95 tonnes last week, stating they are “taking into account the country’s long-term national and economic policy strategy objectives.”
They added that, “the appearance of global spikes in government debts or inflation concerns further increase the importance of gold in national strategy as a safe-haven asset and as a store of value”.
After reaching a new all-time high surpassing $4,000 last week, the S&P 500 has continued its upwards trend. Reaching $4,070 by April 5, SPX channeled between that price point and $4,080 for the rest of the week.
April 8 saw consistent buying pressure return, its price reaching nearly $4,130 going into the weekend. For most of the past week, it has continued trickling up, until being pushed down to nearly $4,120 by the end of April 14.
However, on April 15 SPX gapped up, reaching as high as $4,160 where it is currently trading.
BlackRock CEO Larry Fink said he’s optimistic about financial markets. Even as the S&P 500 already hovers near record levels, he noted that a host of factors are likely to propel markets higher in the near term:
“I believe because of monetary stimulus, fiscal stimulus, the cash on the sidelines, earnings, the markets are OK. Markets are going to continue to be stronger.”
Shares of crypto exchange Coinbase were listed on the Nasdaq yesterday. The chart below features one-minute candles. We see that for the first few minutes eager buyers pushed COIN’S price to a high of $428.94.
Then, as often happens during initial offerings, early adopters cashed in. Over the next 90 minutes, the price fell until hitting support at $310. At some points, it pushed back up past $340, but seems to have even out around $330.
This is just $20 below a preliminary price of $350 set at a private auction in March. This is exceptionally better than the Nasdaq’s reference price of $250.
“Coinbase’s direct listing on Nasdaq is a major step forward in bringing legitimacy and mainstream awareness to the digital asset sector as a whole. For the next billion cryptocurrency users, it will be critical that we focus on ease of use. Millions in funds have been lost due to typos in hard-to-read wallet addresses or simply sending the wrong coin to the wrong wallet.”
Since the end of March Amazon has been on a roll. The stock’s price has seen a nearly unbroken upwards trend for almost the past two weeks.
From a low point of $3,000, the stock’s price has still risen another 13%, past $3,400. Although this is still below AMZN’s all time-high price of $3,549 achieved last September. It has fallen just a bit since then, now trading around $3,371.
According to tech analyst Brent Thill, AMZN is still 70% undervalued at current valuation levels. “Our sum-of-the-parts analysis shows approximately 70% upside over the next three years [for AMZN], driven by Amazon Web Services and Advertising,” he said.
This would put Amazon’s market cap at $3 trillion by 2024. “The company also has room for further expansion in areas such as apparel, B2B, and SaaS,” Thill wrote.
Tesla has been performing somewhat similarly to AMZN these past two weeks. The electric car company pushed up from $600 past $660 by the end of March.
It opened higher on April 1, before trading back down by the end of the day. TSLA again opened higher on April 5 past $700, this time taking several days to trade back down.
It wasn’t until April 12 that TSLA reached $700 trading there the rest of the day. The next day TSLA spiked, trading up all the way to $760.
Selling pressure on April 14 pushed it back down to $730, where it is currently trading.