Day: July 22, 2022

Will Ethereum and Bitcoin see the ‘flippening’ in 2022?

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

an image of a gold bitcoin and a gold ethereum coin side by side against a backdrop of a graph with reda and green bars representing rising and falling prices.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

With Ethereum (CRYPTO: ETH) rallying these days, maybe it’s a good time to revisit the “flippening.” The term (and it’s as fun to say out loud as it is to read or write) is the moment that Ethereum bulls are waiting for. The flippening will take place the moment that the world’s second-most-valuable cryptocurrency overtakes market leader Bitcoin (CRYPTO: BTC) in terms of market capitalization.  

There are no guarantees that the event will even happen, of course. Bitcoin continues to be the brand that every investor knows. The gap between the two digital currencies is also pretty substantial. Bitcoin, with its $434 billion price tag, is more than double Ethereum’s market cap of $182 billion.

But with Ethereum now possibly weeks away from a historic milestone as it continues to be the blockchain platform of choice, it wouldn’t surprise crypto traders if Bitcoin surrendered market leadership to its closest peer. Don’t sleep on the flippening.

Trading places 

Momentum has been on Ethereum’s side lately. It’s up 37% over the past week as of Thursday morning, compared to a more modest but still potent 15% recovery for Bitcoin. Ethereum has also tripled Bitcoin’s return over the past month. Stretch the timeline back a year (merrier times, for sure) and even Ethereum’s 23% slide is marginally kinder than Bitcoin’s 28% plunge.

It’s naturally going to take a lot for Ethereum to flip the script. It would have to soar 139% from here. And Bitcoin would have to stand still. It’s difficult to fathom because the market needs a reason to disconnect the two leading crypto denominations. When one rallies, the other is inching higher. When investor appetite cools, it tends to chill for both currencies. Bitcoin and Ethereum are both roughly 70% off the all-time highs they hit last year. 

If the flippening chatter isn’t getting the same kind of traction it did a year or two ago, it’s because both cryptos would need to triple from here to return to their peaks. The bullish case was that Ethereum would pass Bitcoin on the way up instead of being passing ships in a less inspiring market climate. 

Why is this baton-passing event even possible at this point? Ethereum bulls will point to the merge as the catalyst that could catapult their crypto of choice to the top. Bitcoin and Ethereum currently rely on proof-of-work models to generate new tokens. Mining for new Bitcoin or Ethereum relies on computation power, a validation process that is battle-tested and secure but a drain on energy resources. Proof of work is a red flag for critics with environmental concerns. 

Ethereum has spent the past two years working to shift to a proof-of-stake protocol. It’s a consensus-based mechanism for validating new coins that is popular with many of the faster and more energy-efficient cryptocurrencies. Ethereum was initially hoping to complete the merge to proof of stake last year, but it has proved to be a herculean task. The can has been kicked through the first half of this year, and Ethereum programmers (for now) have Sept. 19 tentatively circled as the day for the migration to proof of stake to take place. 

Traders credit the new date for the surge in Ethereum over the past week, but we’ve seen deadlines come and go in the past. There are still concerns that this could be a “trade on the news” moment, especially if Ethereum keeps climbing ahead of the merge.

However, this could be the moment when Bitcoin and Ethereum truly separate from each other in terms of market sentiment and momentum. Bitcoin wears the market-cap crown right now because it planted the flag when it comes to crypto. It’s the industry standard. Ethereum rose to second place by raising the bar with blockchain technology that powers smart contracts that fuel functionality beyond just a store of value or the means to settle up a transaction.

There are naturally many other types of cryptocurrencies out there, and they have their own particular strengths. A third digital currency could be the one that ultimately overtakes both Bitcoin and Ethereum to rise to the top.

Ethereum is the one we’re watching now, though. It accounts for nearly two-thirds of the total value locked — or deposited in decentralized finance protocol chains — and many smaller digital currencies are there simply to make Ethereum more useful.

Time may be running out for the flippening to take place this year, but if the merge goes smoothly and Ethereum continues to distance itself from Bitcoin’s current limitations, a shift in market sentiment could make it the top dog by 2023.  

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Will Ethereum and Bitcoin see the ‘flippening’ in 2022? appeared first on The Motley Fool Australia.

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Rick Munarriz has positions in Bitcoin and Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin and Ethereum. The Motley Fool Australia owns and has recommended bitcoin and Ethereum. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Up 8% this week, is the Boral share price on the comeback trail?

A concerned man leans against a brick wall looking up at the skyA concerned man leans against a brick wall looking up at the sky

The Boral Limited (ASX: BLD) share price was on a roll this week, gaining 7.78% to close on Friday at $2.77.

It followed a 58% tumble experienced by the stock over the first half of 2022, driven by a February capital return.

In comparison, the S&P/ASX 200 Index (ASX: XJO) lifted 3% this week. It’s also slipped around 10% since the start of this year.

But with one broker focusing on blue skies ahead, could the market be seeing the start of an about-face from the Boral share price?

Let’s take a closer look at what the expert predicts for the future of the building products and construction materials company’s shares.

46% upside tipped for Boral share price

The Boral share price has struggled in recent times, with inflation and energy prices taking their toll on the company.

Boral is a large energy user, and much of its business relies on the housing market, which can be hit hard by rising inflation and resulting interest rate hikes, as my Fool colleague Brendon Lau reported last month.

Further, the company announced its earnings were hampered by “extraordinary” rain earlier this year.

It expects the rain left a dint to the size of around $30 million in its financial year 2022 earnings while inflation and energy costs could have had a $15 million impact.

On top of that, the company noted it expected its transformation project to deliver a benefit of between $45 million and $50 million. That’s lower than its targeted range of between $60 million and $75 million.

But analysts at Macquarie believe the worst could be over for the ASX 200 stock.

The broker has slapped Boral shares with a $4.05 price target and an ‘outperform’ rating. That indicates a 46.2% upside on the company’s current share price.

The post Up 8% this week, is the Boral share price on the comeback trail? 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 over ten 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

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Motley Fool contributor Brooke Cooper 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 recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Why did the ANZ share price smash the other ASX 200 banks today?

Happy couple at Bank ATM machine.Happy couple at Bank ATM machine.

The S&P/ASX 200 Index (ASX: XJO) had a rather rocky end to the week’s trading session on Friday. The ASX 200 ended up losing an anaemic 0.04%, falling to just over 6,790 points. But perhaps surprisingly, most of the ASX 200-dominating bank shares performed rather better.

The Commonwealth Bank of Australia (ASX: CBA) share price inched ahead, gaining 0.18% today to $97.80 a share. But Westpac Banking Corp (ASX: WBC) shares had a very healthy day indeed. Westpac rose 1.1% at $21.07 a share.

National Australia Bank Ltd (ASX: NAB) performed similarly. It finished up a robust 0.74% at $29.88 a share.

But it was the Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price that really lit up the tyres. ANZ shares rose a pleasing 3.01% to $22.59 each. That comes after this ASX 200 bank share closed at $21.93 a share yesterday.

Why did the ANZ share price outshine the other ASX banks?

Well, we can’t know for sure, seeing as there was nothing out today from ANZ itself that might easily explain this disparity.

However, we can consider that ANZ has been in the news this week in a big way. On Monday, the bank announced that it intends to acquire the banking arm of Suncorp Group Ltd (ASX: SUN) for $4.9 billion. This would be one of the largest ASX bank deals in more than a decade.

ANZ’s shares have been halted from trading for most of the week so that the bank could undertake capital raising to fund the acquisition. ANZ shares returned from this halt yesterday, but perhaps investors decided that the bank is looking good with its brand new bag today.

There is certainly no news or announcements out of the other ASX banks this week that come close to the significance of ANZ’s plans. So this could be why we saw such enthusiasm for the ANZ share price today as we head into the weekend.

Whatever the reason, it was certainly a pleasing day for ANZ shareholders.

At the last ANZ share price, this ASX 200 bank share has a market capitalisation of $63.82 billion, with a dividend yield of 6.37%.

The post Why did the ANZ share price smash the other ASX 200 banks today? appeared first on The Motley Fool Australia.

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

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*Returns as of July 7 2022

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Motley Fool contributor Sebastian Bowen has positions in National Australia Bank Limited. 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 recommended Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Why did the Kogan share price rocket 20% this week?

Woman looks amazed and shocked as she looks at her laptop.

Woman looks amazed and shocked as she looks at her laptop.Despite a few bumps and bruises, it’s been a pretty good week for ASX shares this week.

As it stands on Friday afternoon, the All Ordinaries Index (ASX: XAO) has put on a pleasing 3.15% since last Friday’s close. But that’s nothing compared to the Kogan.com Ltd (ASX: KGN) share price.

Kogan shares have had a ripper of a week, no way around it. For starters, this online-based retailer added a pleasing 4.47% during today’s trading session alone, leaving it at $3.27 a share going into the weekend.

This time last week, Kogan shares were trading at just $2.72, only a whisker off the company’s 52-week low of $2.66.

This means that the Kogan share price has climbed from $2.72 to $3.27 in a week – a whopping gain of 20.22%.

But even so, this company is still deep in the red over 2022 thus far. Year-to-date, the Kogan share price remains down a nasty 62% or so, despite this week’s gains.

So what has put such a rocket behind the Kogan share price this week?

Why has the Kogan share price shot the moon this week?

Well, unfortunately, it is entirely unclear. This week’s spectacular gains have not resulted from anything the company has released itself. Indeed, we haven’t had any official news or announcements from Kogan since 8 July.

However, we have seen a definite trend emerging on the ASX boards this week that could shed some light on Kogan’s gains.

Many smaller ASX retailers like Kogan have been suffering a similar fate this year. But this week has seen several of them jump on a similar rocket to Kogan.

Take Dusk Group Ltd (ASX: DSK). Its shares are up 8.6% over the past week. Or Lovisa Holdings Ltd (ASX: LOV). Lovisa shares have surged more than 8% over the same period. Not quite at Kogan’s level, but pleasing enough.

So perhaps Kogan’s impressive gains are just part of this trend that we are seeing. Whatever the reason, it has undoubtedly been a great week for Kogan shareholders.

At the last Kogan share price, this ASX retailer has a market capitalisation of $350.72 million.

The post Why did the Kogan share price rocket 20% this week? 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 over ten 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

See The 5 Stocks
*Returns as of July 7 2022

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Motley Fool contributor Sebastian Bowen has positions in Dusk Group Limited and Kogan.com ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Kogan.com ltd. The Motley Fool Australia has positions in and has recommended Kogan.com ltd. The Motley Fool Australia has recommended Dusk Group Limited and Lovisa Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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