Is Bitcoin A Better Investment Than Cannabis Stocks?
BeInCrypto | Apr 26, 2019 02:19AM ET
At BeInCrypto, we offer regular price analyses and predictions of the most popular and relevant cryptoassets. Today, we are beginning a weekly series in which we compare price fluctuations of Bitcoin (BTC) against the stock prices of two leading publically traded cannabis companies: Cronos and Canopy.
The reason we chose these two companies is because Canopy is the first Canadian marijuana company while Cronos is the first publically traded cannabis company listed on NASDAQ. Bitcoin is selected because it remains the industry’s leading cryptocurrency.
h3 What’s Going On With Canopy?/h3The price of Canopy (CGC) is analyzed at two-hour intervals from Jan 24 to Apr 26 in order to trace the current pattern.
The price of CGC reached a high of $51 on Feb 3. A sharp decrease ensued.
Since then, it has been trading inside a horizontal channel with resistance and support at $49 and $40:
The highlighted part of the graph is the price of CGC during the week of Apr 18-25. During this period, it has seen significant price increases.
Furthermore, on Apr 18, the company acquired New York-based rival Acreage Holdings Inc. for $3.4 billion.
At the time of writing, the price is trading very close to the resistance line near $49.
h3 What About Cronos?/h3The price of Cronos( CRON) is analyzed at two-hour intervals from Apr 4 to 24 in order to trace the current pattern.
The price of CRON reached a high of $24.5 on Apr 4. A gradual downtrend began. The price has been trading inside the descending channel we have outlined below.
The highlighted part is the price of CRON during the week of Apr 18-25. During this period, it has seen slight price increases.
At the time of writing, the price was trading near $17, very close to the resistance line.
h3 A Look At Bitcoin/h3The price of BTC/USD is analyzed at two-hour intervals from Apr 1 to 25 in order to determine Bitcoin’s current trading pattern:
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On Apr 2, a massive spike caused Bitcoin to break out of its previous trading pattern. The price reached a high of $5335.50 the following day.
Since then, the price has been trading inside an ascending channel. The highlighted part is the price of BTC during the week of Apr 18-25.
Like both CRON and CGC, Bitcoin has seen price increases over the last week. At the time of writing, the price was trading near $5500.
h3 Comparing April 18-25 Performances/h3The price of CGC, BTC (red) and CRON (green) are compared at one-hour intervals from Apr 17 to Apr 24 in the graph below. The right-hand scale presents the percentage increase/decrease of the three assets during this period.
The price of CGC began the measuring period with a sharp decrease. However, that was followed by a gradual increase. Measuring from Apr 18, the price has increased by 5.50%.
A portion of this increase could have occurred because of the positive news mentioned in the first section.
The price of BTC has enjoyed a gradual increase which intensified on April 23. It reached a high on Apr 24 before subsequent losses. Measuring from Apr 18, the price of BTC has increased by 3.44%.
Similar to CGC, the price of CRON began the measuring period with a sharp decrease. Since then, it has alternated between gradual increases and decreases. Measuring from Apr 18, the price has increased by 1.18%.
h3 Summary/h3As evidenced by the charts above, we can come to the conclusions that the price of CGC has enjoyed the biggest increase, followed by the price of BTC and CRON. All three of the assets have been characterized by significant volatility. However, while Bitcoin and Cronos are inside sideways/upward patterns, the price of Canopy is in a downtrend.
Based on this week’s findings, we can make the assumption that the marijuana industry is similar to the concurrency industry in regards to volatility.
We will come back to this hypothesis during next week’s analysis.
Interested in a yearly comparison of the marijuana and cryptocurrency industries? Click on the green button below:
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