Gold, Stocks, and Bitcoin: Weekly Overview — July 22

This week’s price movements for Bitcoin (BTC), gold, and our stock picks Mastercard and BNY Mellon.

BTC

Bitcoin (BTC) has continued its tumultuous swing through the $30,000 range throughout the month of July. However, the trend has overall been a downward one. Trading around $33,000 on July 1, BTC’s price nearly pushed up to $36,000 by July 5. It jostled over the next few days, eventually falling below $33,000 by July 9. Another small rally pumped back up to nearly $35,000. Here, things took a turn for the worst, with successive falls below $32,000, $31,000 and finally $30,000 on July 14, 19 and 20 respectively. However, BTC recovered about $30,000 on July 21. It is currently trading just above $32,000.

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Vijay Ayyar, head of Asia-Pacific at cryptocurrency exchange Luno, said Wednesday’s price move was likely a “dead cat bounce,” where an asset briefly recovers from a prolonged decline before continuing to slide. Unless bitcoin can climb above $32,000-$33,000, Ayyar anticipates further slippage, with BTC potentially tumbling as low as $24,000-$25,000. “We saw broad market rallies across the board last night as well, and I think crypto is just playing off of that,” Ayyar told CNBC. “In general, there are a lot of macro factors weighing down on risk-on assets at the moment — inflation worries, COVID, and with crypto we’ve got more specific worries such as much more regulatory oversight.”

GOLD

Gold has had an overall prosperous month of July. Starting at $1,765, the price of gold climbed steadily through the first week of July, reaching $1,812 by July 6. It then proceeds to channel between $1,790 and $1,820 over the next week, with a gradual upward trend. It then runs up to $1,830 on July 14, 15 and 16, before falling to $1,800 by July 19. Although the price spiked again to $1,825 the next day, it is currently back down, trading around $1,800.

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The price of gold extended its slide on the back of a rebound in stocks and a firmer US dollar, while investors looked to the European Central Bank for their stance on policy. “Due to the return of the risk appetite to the market, concerns about the possible implications of the coronavirus have again abated,” Commerzbank analyst Eugen Weinberg said. “As a result, gold as a safe haven in this situation has not seen a huge demand.”

MA

Mastercard (MA) has overall performed well in July, however it lost some of these gains over the past week. From July 8, MA was trading around $368, reaching $376 by July 12. It then spiked to higher highs on successive days to $386, $391 and $393, lingering around this level going into last weekend. However, MA gapped down and sold off significantly during the opening hours of trading on July 19.

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Shares of the payments company dipped due to concerns over rising cases of the COVID delta variant across the United States. As a global payments company that facilitates transactions, it makes money based on total spend volume, so slower economic growth and potential lockdowns are inhibitive. Meanwhile, earlier this week Mastercard announced it would enhance its card program for cryptocurrency wallets and exchanges. This makes it simpler for partners to convert cryptocurrency to traditional fiat currency.

BK

Finally, Bank of New York Mellon (BK) has had a rather neutral month overall. By July 8, BK was trading around $48.50. The next day it jumped up and by July 10 was trading at $50.50. However, it trickled down from there over the next couple of days, eventually reaching nearly $47.50. Although it recovered a bit going into the weekend, by July 19, the price had fallen to the same level. BK then shot back up to $49.50 on July 20. It is currently trading around $50.

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Earlier this week, BNY Mellon joined a consortium of six banks behind cryptocurrency trading platform Pure Digital. The move demonstrates the growing demand from traditional asset managers for cryptocurrencies. BNY Mellon, State Street and a few other unnamed banks are creating a cash cryptocurrency trading venue, in hopes of competing against larger incumbents. In collaborating on Pure Digital, BNY Mellon said it was “exploring new digital asset servicing solutions for our clients as the regulatory landscape develops”.BNY Mellon is planning to use the cash platform to trade and provide other services. BNY Mellon began offering cryptocurrency custody to its clients in February,