Gold, Stocks, and Bitcoin: Weekly Overview — June 3

This week’s price movements for bitcoin (BTC), gold, and our stock picks, Shopify, Mastercard, and GameStop.

BTC

Bitcoin had another rocky week, but not quite as tumultuous as the one prior. By May 27, it had reached back above $40,000, only to tumble back down over the course of the next two days. By May 30, it was trading around $34,000.

That day it jumped up over $36,000, before falling right back down again. From May 31, it reached $37,000, then down to $36,000, on June 1, and up to $38,000, by June 2. By June 3, it was trading above $39,000, where it is currently trading around.

Source:TradingView

Global bank JPMorgan said that institutional investors have so far avoided buying bitcoin during the current dip in the cryptocurrency’s price. JPMorgan strategist Nikolaos Panigirtzoglou wrote in a research note that bitcoin’s price might fall further before stabilizing after a correction.

“It now seems unlikely that we see this volatility ratio returning to the x2 levels of last summer. The best we can hope for over the medium term is for this volatility ratio to partially revert from around x6 currently to around x4 by year-end,” Panigirtzoglou said.

GOLD

Despite dropping considerably in the past few hours, gold has had a pretty steady week. By the end of last week gold’s price had been flirting with the $1,900 price point, which it managed to breach going into the weekend on May 28.

It maintained this on May 31, pushing marginally higher to $1,915, on June 1. However, from there, it swooped down below $1,900 going into June 2. By the end of that day it breached that threshold again, only to plummet going into June 3. It is currently trading around $1,870.

Source:TradingView

Gold ostensibly slid due to better-than-expected U.S. employment and service-sector data, which propelled the dollar higher and boosted expectations that the strong economic readings could reignite tapering from the Federal Reserve.

“We’re coming out of the woods here, the data is getting better, there are some inflation issues that could put a damper on things, but we have turned the corner,” Bob Haberkorn, senior market strategist at RJO Futures, said and added:

“The better than expected data has put traders on the defensive, they’re preparing for possible statements from the Federal Reserve on tapering or higher rates although not immediately.”

Shopify (SHOP)

Canadian e-commerce company Shopify has had a good couple of weeks. Starting on May 13 at just below $1,040, the stock’s price has steadily inclined. By May 17, the price had reached $1,100, and by May 19, $1,140.

Throughout that day and into the next, it blew past $1,200. It kept it up from there, reaching just past $1,270 at its peak, on May 24. SHOP has channeled between that price point and $1,230 since then, but just recently broke down. It is currently trading around $1,220.

Source:TradingView

Both merchants and consumers pivoted online during the pandemic, which benefited Shopify. Shopify’s financial outlook continues to assume that “as countries roll out vaccines in 2021 and populations are able to move about more freely, the overall economic environment will likely improve.” It expects some rotation in consumer spending back to offline retail and “a more normalized pace” of e-commerce growth.

Mastercard (MA)

Overall, Mastercard has performed somewhat poorly over the past week or so. From a recent high point of $373 on May 25, MA tumbled down, over the next two days, reaching $361, by May 27.

The next two days of trading, it struggled to get past $365, eventually falling below $360, at the end of June 1. However, the price gapped up and jumped further to $370, in the opening hour of June 2, but then trickled down over the course of the day. It is currently trading around $365.

Source: TradingView

Despite this past week, Mastercard seems upbeat about a travel recovery as vaccinations pick up in the U.S. and abroad. Mastercard says it’s seeing strength in countries where vaccination programs have taken hold and governments have established “travel bubbles,” according to remarks by Chief Financial Officer Sachin Mehra. “There are more and more of those which are starting to happen,” he said. “Travel is starting to come back.”

GameStop (GME)

Meanwhile, GameStop (GME) seems to be turning heads again. After channeling between $160 and $180 for a week, GME pushed past the $200 mark, on May 25, then gapped up even further to $240, on May 24.

It continued trading around there, pushing up to $260, then down to $220, on May 28, before rising again in the new week reaching $280, on June 2. It’s since fallen and is now trading around $250.

Source:TradingView

The rise can primarily be attributed to the broader rally seen in “meme” stocks. There is also company-specific news that buoyed the stock price rally. GameStop is entering into a non-fungible token (NFT) platform based on the Ethereum (ETH) blockchain.