Gold, Stocks, and Bitcoin: Weekly Overview — March 10

This week’s price movements for Bitcoin (BTC), gold, and our stock pick Microsoft.

BTC

Bitcoin has had a tumultuous month of March, reflecting the turmoil in global markets from the ongoing military crisis in Ukraine. BTC came into the month streaking upwards, nearly achieving $45,000 on March 2, before trending back in the other direction and hitting $39,000 by March 5. It took further dips down, nearly hitting $37,000 on March 7. From there it recovered a bit before spiking March 9 above $42,000. No stranger to volatility, BTC has since fallen to $39,000.

Bitcoin had spiked earlier this week because President Joe Biden had signed an executive order which will require U.S. government agencies to assess the benefits and risks of the Federal Reserve creating a digital dollar, along with other issues related to cryptocurrency. The executive order could potentially expand the adoption of virtual currencies in the U.S. financial system. “With the recent sanctions regime in place as a result of the war in Ukraine, it is doubly imperative that we have a regulatory framework in place for digital assets that counters illicit finance, and prevent risks to financial stability and national security,” said Michael Pierson, managing partner at law firm FisherBroyles.

GOLD

Gold has fared rather well in March, hitting peaks not seen for some time. Starting out the month at $1,900, it rose to $1,940 by March 5. While it trailed along there a few days, by March 7 it had risen to $2,000. Despite some dips, it continued to rise, hitting $2,070 on March 8. Selling pressure has since returned, bringing gold back down just below $2,000.

Gold steadied near the $2,000 an ounce level, as its safe-haven appeal was supported by the prolonged conflict between Russia and Ukraine. A rush to safe-haven assets earlier this week had pushed gold near the record levels hit in August 2020. February’s inflation data, which was in line with expectations but also showed the biggest year-on-year increase since January 1982, also factored in. “The inflation numbers are certainly an underlying bullish element for gold. However, geopolitics is trumping economic data right now,” said Kitco Metals senior analyst Jim Wycoff.

MSFT

Microsoft has had a rough start to the year so far. On the first trading day of the year, MSFT opened at $335. By January 10 it had fallen to $305. While a bounce brought it back above $320 it proceeded to fall again, hitting nearly as low as $275 by January 24. MSFT seemed to gain some upwards momentum going into February, hitting $315 on February 2, it soon continued trending downwards again. By February 23 it had reached nearly $270. Another brief recovery ensued coming into March, but MSFT is currently down, trading around $280.

Microsoft founder and former Chairman Bill Gates told Bloomberg that average investors should be wary of following the example of figures like Elon Musk in regard to cryptocurrencies. “Elon has tons of money, and he’s very sophisticated, so I don’t worry that his Bitcoin will randomly go up or down,” Gates said. “I do think people get brought into these manias who may not have as much money to spare, so I’m not bullish on Bitcoin,” adding “if you have less money than Elon, you should probably watch out.” However, Gates acknowledged that the Bill and Melinda Gates Foundation “does a lot in terms of digital currency,” but only when “you can see who is making the transaction.” He added that “digital money is a good thing,” especially when it comes to funding poorer countries and getting “money out to their citizens very, very efficiently.”

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