Coinbase Stock Rallies in Bullish October —Gold, BTC, Stock Overview Nov 5

This week, BeInCrypto talks price movements for Bitcoin (BTC), gold, and our stock pick — Coinbase (COIN). COIN rebounded by more than 50% as major cryptocurrencies hit all-time highs.

BTC

Keeping last week’s upward momentum Bitcoin (BTC) kept largely above $60,000 this past week. Making a jump late in the day on October 28, BTC rose from $59,000 to nearly $62,000. Then settling around $61,000 on Oct 29, it bumped up again to nearly $62,500. Sinking on October 30, it reached  $62,500 again on October 31 before momentarily dropping below $60,000 on Nov 1.

It immediately saw buying pressure pushing it back to $62,500, before another sink and rebound pushed it up past $64,000 on Nov 2. Trickling down since then, BTC is now trading just above $61,000.

BTC’s price briefly dropped after the United States Federal Reserve announced plans to taper its $120-billion-a-month bond purchases. “On one hand, tightened monetary policy may lead to sluggish growth of bitcoin demand, as many use it to hedge inflation, and less QE, in theory, means less inflation,” said BitBull Capital CEO Joe DiPasquale.

“On the other hand, the effects of the largest QE in history may lead to the largest inflation in history, regardless of the Fed attempting to scale back. If this happens, we expect demand, and prices, for bitcoin to rise to new all-time highs.“

GOLD

Although gold mostly stumbled this week, it has largely returned to last week’s baseline. On October 28, gold was trading for as high at $1,810, but by midday on October 29, it dropped as low as $1,772. From there it worked its way back up, reaching $1,792 by November 2. However, it trickled back down from there, until dropping suddenly again midday on November 3 to below $1,760. Buying pressure immediately returned at that point, sending it back up to the $1,790s by November 4, where it is currently trading.

Gold prices were poised for their best day in three weeks as the US Federal Reserve and the Bank of England indicated here they were in no rush to raise interest rates. The Fed indicated that they are probably not going to mess with interest rates, which is bullish for metals, said Bob Haberkorn, senior market strategist at RJO Futures. Fed Chair Jerome Powell signaled the central bank would stay patient before raising interest rates while beginning to taper its massive bond-buying program this month.

COIN

Coinbase has trended well over the course of October but has stalled a bit coming into November. On Oct 13, COIN was trading at roughly $245. However the next day, and the day after that, it surged, reaching $295 by October 18.

It continued trending up hitting just above $315 on Oct 20. By Oct 22 it fell back down to support around $295 before spiking up to $325 on October 25. Although a bit volatile over the succeeding day, COIN continued trending up to around $340 where it is currently trading.

Coinbase’s recent consolidation can likely be attributed to some new service offerings. For instance, Coinbase is now offering loans of up to $1 million to eligible customers, whose Bitcoin will serve as collateral. These customers will be able to “take out a line of credit” without any prior credit checks, the crypto exchange said. The cash will be immediately transferred to their PayPal account or via ACH to their bank account.

Coinbase is additionally testing a new subscription-based service that would give users access to enhanced features called Coinbase One. Although the subscription product will be offered to a small number of users to start, benefits include zero-fee trading and prioritized phone support “even on holidays and weekends.”

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