Gold & Bitcoin: Weekly Overview
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BTC was hovering around $30,000 towards the beginning of the month. It jumped up to $31,000 on June 6, only to drop down and repeat the next two days.
Trading around $30,000 from June 8, BTC proceeded to tip downwards from June 10, falling below $28,000 on June 12, then dropping the next day. BTC fell to nearly $20,000 on June 15.
It is currently trading around $21,000.
After diving to an 18-month low, Bitcoin was buoyed by the U.S. Federal Reserve’s tough stance on inflation even in the midst of a market meltdown following crypto lender Celsius freezing customer withdrawals.
“Some parts of the broader crypto ecosystem are facing a rather harsh reckoning,” said Mikkel Morch, executive director at digital asset hedge fund ARK36. “As the reality of the bear market starts to settle in, the hidden leverages and structural weaknesses of projects that only worked when the prices went up are finally brought to light.”
Gold markets have been a bit rocky the past two weeks. Trading around $1,850 on June 2, the price of gold rose over $1,870 on June 3.
From there it fell back down, dropping below $1,840 by June 7. Despite hitting nearly $1,860 the next few days, gold dropped below $1,830 on June 10, only to spike up to nearly $1,880.
By June 14, however, it had fallen back to $1,820, sinking further under $1,810 the next day. Rebounding a bit, it is currently trading around $1,850.
An easing dollar offset pressure from a large interest rate hike from the U.S. Federal Reserve helped to steady gold over the past few days. Gold’s safe-haven demand could fade further if the Fed successfully fights inflation without pushing the U.S. into a recession, said Carsten Menke, head of Next Generation Research at Julius Baer.
“Commodity trading advisor liquidations can likely continue to weigh on the yellow metal, increasingly adding pressure on this cohort to liquidate their longs,” TD Securities said in a note.
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