Day: October 21, 2021

Here’s what’s next for the Bitcoin price: expert panel

A man stands on a road marked Bitcoin with a questionmark ahead.

The Bitcoin (CRYPTO: BTC) price has retreated from Wednesday’s new all-time highs of US$66,930 (AU$89,240).

The digital token’s lost 6% since then, currently trading for US$62,845.

Interest in the world’s biggest crypto remains elevated, with more than US$45 billion worth changing virtual hands over the past 24 hours, according to data from CoinMarketCap.

With that level of interest in mind, the Motley Fool reached out to 3 crypto experts for their take on BITO, the new US listed, futures-based Bitcoin exchange traded fund (ETF), and their forecasts for where the Bitcoin price could be heading next.

(For details on the launch of the ProShares Bitcoin Strategy ETF (NYSE: BITO), go here.)

Now, on to our expert panel:

  • Jonathon Miller, managing director Australia of cryptocurrency exchange Kraken
  • Peter Kazacos, owner of Kaz, technology partner for Quantum Digital Assets Limited
  • Simon Peters, market analyst at global online trading platform eToro

The launch of BITO

The Motley Fool: The launch of BITO garnered a lot of investor excitement and looks to have helped drive the Bitcoin price to new highs. What are your thoughts on a futures-based Bitcoin ETF, and will we ever see something similar on the ASX?

Jonathon Miller: The launch of a Bitcoin ETF is an exciting moment for the maturation of the digital assets industry and a good measure of where Bitcoin is in its adoption journey.

The timing of the BITO launch is also significant in that it went live when the Bitcoin price was reaching all-time highs. We saw US$1 billion in trading volume on the first day which is a great achievement, and another of the many positive news stories we have seen lately for crypto adoption.

We can expect that Australian regulators are watching what happens in the US and will use this as a framework for decisions on local products. It’s hard to predict when this will happen, but the success of BITO so far is a very positive thing.

Peter Kazacos: Anything that makes it easier for investors to get exposure to an asset is a good thing for that asset. In the case of BITO, it’s a good thing for Bitcoin. The ETF means large institutional investors and investment houses can easily participate in a very traditional sense in the fortunes of BTC. A futures-based ETF like BITO paves the way to a spot ETF in the near term, which would be a significant milestone and have a positive impact on the Bitcoin price.

It is likely that we will one day see an Australian Bitcoin ETF as demand for the asset continues globally.

Simon Peters: While ProShares (BITO) is not an ETF holding the underlying asset that many in the crypto community want to see, it’s still a step forward in the right direction.

A Bitcoin futures ETF now provides a convenient way for investors to get exposure to the Bitcoin price movement. However, investors who plan to hold for the longer term would need to take into account ‘hidden fees’ within the futures ETF. Contracts will have to roll every month, and this could erode potential gains.

BITO saw a strong first day of trading. However, with more Bitcoin futures ETFs in the approval pipeline, whether this particular ProShares Bitcoin futures ETF can carry this momentum forward, we’ll see.

Where to now for the Bitcoin price?

Motley Fool: After posting a new all-time high this week, what is your outlook for the Bitcoin price movement?

Jonathon Miller: This rally has been driven by an incredible year of crypto adoption news for Bitcoin as well as Ethereum. The two coins have both shared leading roles in the news cycle, dragging each other down and bringing each other up in the market.

The all-time Bitcoin price high earlier this year was largely due to institutional interest where we saw adoption from big names such as Fidelity, Tesla and PayPal.

There is no way to predict the market, but it’s important to highlight that Bitcoin has scarcity with only 21 million in total in supply. And there are a lot more people in the world than that. The space is moving very quickly, and we know from Kraken Intelligence reports that the final quarter of the year has historically been the most bullish.

However, after price hikes, there is always the risk that we will see price drops as people look to take a profit.

Peter Kazacos: Mass adoption is the buzz word for any Bitcoin maximalist. If we see more mass adoption, which we define as BTC entering the traditional financial system, we will see more demand for the asset, which will fuel Bitcoin price increases.

If Bitcoin finds more champions – like Jack Dorsey from Twitter and President Bukele from El Salvador – we could very well see a US$100,000 Bitcoin price in the near future.

Advances in technology are the biggest risk for Bitcoin. Specifically the advent of quantum computing, which could break current cryptography. Kaz has a solution which uses quantum technology to upgrade the cryptography of existing protocols like BTC.

Quantum Assets on the Binance Smart Chain are the first crypto to adopt our quantum technology and are using it to launch Quantum Bitcoin in a bid to ensure the cryptography of Bitcoin remains safe and secure.

Simon Peters: Now that we’ve seen a new all-time Bitcoin price high, the question is turning to whether we’ll see a pull back or will the price carry on. Given the price run in the last few weeks, the Bitcoin price is somewhat overextended and we could (very soon) see a pullback in the short term as some investors and traders take some profit off the table.

Long term, on-chain metrics continue to be bullish. More of the circulating Bitcoin supply is continuing to migrate from short-term holders to long-term holders, which is squeezing supply. Simultaneously, inflation concerns could increase demand, with institutional and retail investors exploring alternative assets like Bitcoin rather than traditional inflation hedges or holding cash.

Also taking into account seasonality, the fourth quarter tends to be a strong time of the year for crypto bull markets. Refer back to 2017 for example. So, I wouldn’t rule out higher prices than where we are currently by the end of 2021, possibly into the six-figure zone.

Invest with care

The Motley Fool will end with a recap of Jonathon Millers’ words, “There is no way to predict the market.”

While the Bitcoin price could head into the six-figure range from here, it could also go the other way.

Invest with care.

The post Here’s what’s next for the Bitcoin price: expert panel appeared first on The Motley Fool Australia.

Should you invest $1,000 in Bitcoin right now?

Before you consider Bitcoin, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Bitcoin wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bitcoin, PayPal Holdings, Tesla, and Twitter. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2022 $75 calls on PayPal Holdings. The Motley Fool Australia has recommended PayPal Holdings. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Brokers name 3 ASX shares to buy today

ASX shares Business man marking buy on board and underlining it

It has been another busy week for Australia’s top brokers. This has led to the release of a large number of broker notes.

Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Healius Ltd (ASX: HLS)

According to a note out of Credit Suisse, its analysts have retained their outperform rating and $5.50 price target on this healthcare company’s shares. Credit Suisse was impressed with the company’s performance during the first quarter. It notes that its earnings almost reached the consensus first half estimate in just the three months. And while its analysts acknowledge that COVID testing won’t be in demand forever, it feels the market may be underestimating medium term demand. The Healius share price is trading at $4.98 today.

Megaport Ltd (ASX: MP1)

A note out of Citi reveals that its analysts have retained their buy rating and $20.00 price target on this network as a service company’s shares. This follows the release of Megaport’s quarterly update this week. Citi notes that Megaport’s monthly recurring revenue (MRR) growth was strong but that its port adds were 30% softer than expected. Nevertheless, it remains buy-rated as it expects strong growth going forward driven by structural tailwinds. The Megaport share price is fetching $17.47 on Friday.

Macquarie Group Ltd (ASX: MQG)

Analysts at Morgan Stanley have retained their overweight rating and $240.00 price target on this investment bank’s shares. According to the note, Morgan Stanley believes the Macquarie share price deserves to trade on higher multiples due to its green credentials. The broker notes that its green revenues are growing rapidly at a time when demand for green investments is increasing. In addition, the broker believes there are a lot of unrealised gains to be found across existing investments. The Macquarie share price is trading at $197.80 today.

The post Brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of August 16th 2021

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended MEGAPORT FPO. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool Australia has recommended MEGAPORT FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Magnis Energy (ASX:MNS) share price leaps 6% on lithium battery update

asx share price growth represented by cartoon man flexing biceps in front of charged battery

The Magnis Energy Technologies Ltd (ASX: MNS) share price is pushing higher today after the company provided a project update.

At the time of writing, Magnis shares are up 5.33% to 40 cents apiece. In comparison, the All Ordinaries Index (ASX: XAO) is up 0.049% to 7,732.30 points.

What did Magnis announce?

In its release, Magnis advised that Imperium3 New York (iM3NY) has received the approval for the Aquifer Permit. This is the last approval required for near term production at the iM3NY Battery Plant based in Endicott, New York.

Magnis is a major shareholder with roughly a 60% stake in iM3NY, a New York based Lithium-ion Battery plant.

iM3NY plant is fully funded to begin commercial production and scale up to 1.8 GWh, starting in the first-half of 2022. This will make it one of the largest players in the United States lithium-ion battery cell manufacturing market.

Currently, China is the global leader on lithium-ion batteries, however, the United States is quickly closing the gap.

The Aquifer Permit was officially approved by the Village of Endicott. The approval combined with the recently granted Air Permit and The Environmental Justice Plan is all the permits required by iM3NY for near term production.

The company holds cell design, process and supply chain licensing, along with C4V’s cathode and anode technology for the United States market. This means that the anode and cathode produced with the C4V license cannot be sold to any other cell manufacturer in the country.

A special report by Abt Associates suggests such batteries contain at least 87% less dirty energy per kWh versus comparable batteries making them one of the greenest batteries in the world.

iM3NY CEO, Chaitanya Sharma commented

The is very important day for iM3NY, it is a huge milestone after many months of hard work. We now have all permits in place for near term production. Semi-Automated production is on track for this quarter and we are putting in long hours to achieve this major milestone.

About the Magnis share price

In the past 12 months, Magnis shares have boasted a gain of around 110% from continued positive investor sentiment. The company’s share price charged higher in late January after announcing a deal with the United States government.

Based on today’s price, Magnis presides a market capitalisation of roughly $367.13 million, with approximately 929.4 million shares on hand.

The post Magnis Energy (ASX:MNS) share price leaps 6% on lithium battery update appeared first on The Motley Fool Australia.

Should you invest $1,000 in Magnis right now?

Before you consider Magnis, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Magnis wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Cettire (ASX:CTT) share price is rocketing 7% on Friday

The Cettire Ltd (ASX: CTT) share price is gaining ground today despite there being no market-sensitive news out of the company.

At last check, Cettire shares are trading 7.26% higher at $3.40 apiece.

Let’s take a closer look at what’s been fuelling the Cettire share price recently.

What’s been happening with Cettire of late?

Cettire is a global online retailer that offers personal luxury goods through its website. Its shares began lifting as we started the walk into September. This coincided with the company’s FY21 earnings release. In its report, the company recognised active customer growth of 285%, while it also saw sales of $92.4 million – a 304% year-on-year increase.

These results carried through Cettire’s income statement, where it recorded $2.1 million at the earnings before interest, taxes, depreciation, and amortisation (EBITDA) line and $12.7 million in operating cash flow.

In the week after its earnings release, Cettire shares gained 44% to reach a high of $3.64.

Yet, the Cettire share price has since come off that level, and basically traded sideways from 1 October until the open today.

In fact, over the past month, the company has slipped into the red by 7%.

So in light of today’s 7% gain, it appears unclear as to what is causing investors to bid up the Cettire share price.

However, as the Motley Fool has previously reported, Cettire has a number of levers delivering a direct line of fuel to its growth engine.

The company’s position in e-commerce, its recent earnings surprise, and innovation around products are all key investment highlights for the Cettire share price, according to the Motley Fool’s Tristan Harrison.

It is worth noting that the S&P/ASX 300 Retailing index (AXRTKD) is also charging higher lately, and is up 1.3% today as well.

The index made a sharp recovery from 6 October after a large selloff in the ASX retail basket that started in August.

Since then, it has climbed around 5% until today, indicating strengths across the broader ASX retail and e-commerce sectors.

Aside from these contributing factors, it is difficult to pinpoint a direct catalyst for Cettire’s returns today.

Cettire share price snapshot

The Cettire share price has been a significant outperformer on the ASX this year, posting a return of 621% since January 1.

This is after it rallied 578% over the last 12 months, an entire universe it seems above the S&P/ASX 200 index (ASX: XJO)’s return of about 20% in that time.

The post The Cettire (ASX:CTT) share price is rocketing 7% on Friday appeared first on The Motley Fool Australia.

Should you invest $1,000 in Cettire right now?

Before you consider Cettire, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Cettire wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Cettire Limited. The Motley Fool Australia has recommended Cettire Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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