Stock Pick

Month: October 2022

  • Was the Woodside share price a safe haven in September?

    Workers inspecting a gas pipeline.

    Workers inspecting a gas pipeline.

    The S&P/ASX 200 Index (ASX: XJO) fell by 7.3% in September, which was one of the most painful months for ASX shares in the last few years. But, was the Woodside Energy Group Ltd (ASX: WDS) share price able to provide some relief against this sell-off?

    It might be reasonable to think that Woodside may be an uncorrelated performer considering it has already beaten the ASX 200 by such a wide margin in 2022 to date – Woodside is up 45% this year while the ASX 200 is down 13%.

    But, just because it’s up this year doesn’t mean it will do well every month.

    Woodside share price performance in September

    Last month saw Woodside shares drop by approximately 7.5%. This was actually slightly worse than the ASX 200 which dropped by 7.3% over the month.

    As one of ASX’s largest resource businesses, its short-term performance is highly correlated to the commodities that it produces. As a major oil and gas business, how energy prices perform can be very important for investor sentiment.

    The oil price climbed in the first half of 2022 as markets reacted to the knock-on effects of the Russian invasion of Ukraine and how the West decided to try to isolate Russia.

    However, since June, the oil price has actually been trending downhill. Woodside can’t generate quite as much profit as it could when the oil price was where it was in the middle of the year.

    What’s next for energy prices?

    It’s hard to say what energy prices will do next. On the one hand, the northern hemisphere is heading into winter which could mean further volatility (and increases?) for energy sources like coal and gas.

    But, there is also a growing wariness about the potential for a global recession. This could mean less demand for oil, which could partly explain why the oil price has been going lower and may also be the reason for the short-term weakness of the Woodside share price.

    But, one broker gave out some optimistic thoughts about the business in September. Citi upgraded its rating to a buy on Woodside, with a price target of $36.50. That implies a possible upside of more than 10%.

    The reason for the optimism was an increase in expectations for global gas prices. It thinks Woodside can do well through LNG sales to the market.

    At the current Woodside share price, Citi thinks it’s valued at 7 times FY23’s estimated earnings with a projected grossed-up dividend yield of 14.2%.

    The post Was the Woodside share price a safe haven in September? appeared first on The Motley Fool Australia.

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    Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Tristan Harrison 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 Scott Phillips.

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  • Why is the Pilbara Minerals share price surging 7% on Tuesday?

    A man reacts with surprise when her see a bargain price on his phone.A man reacts with surprise when her see a bargain price on his phone.

    The Pilbara Minerals Ltd (ASX: PLS) share price is taking off on Tuesday. Its gain sees it coming in as one of the S&P/ASX 200 Index (ASX: XJO)’s top performers.

    The ASX lithium stock has lifted 6.81% right now to trade at $4.86.

    Meanwhile, the S&P/ASX 200 Materials Index (ASX: XMJ) is surging 2.75% to lead the broader ASX 200’s 2.26% gain.

    So, what wind might be lifting the wings of the ASX 200 lithium favourite today? Well, the federal government has revealed its outlook for the commodity, and it’s remarkably bullish.

    What’s going right for the Pilbara Minerals share price?

    The Pilbara Minerals share price is launching amid news Australia is predicted to pocket $13.8 billion from lithium exports in 2022-23. That marks a whopping 180% increase on the prior year’s near-$5 billion impact.

    The Australian Government’s latest quarterly Resources and Energy report forecasts spodumene and lithium hydroxide prices to rise from US$598 and US$17,370 a tonne respectively in 2021 to US$2,730 and US$38,575 a tonne in 2022.

    They’re predicted to peak at US$3,280 and US$51,510 a tonne in 2023.

    The value of Australia’s lithium exports is then forecast to drop to $12.9 billion in 2023-24 as the commodities’ prices ease to US$2,490 and US$37,650 per tonne in 2024.

    Australia is the world’s largest lithium exporter, responsible for 46% of global lithium production in 2020.

    And the nation is expecting its production capacity to grow at an annual average of more than 20%. That could see Aussie lithium production rise from 247,000 tonnes of lithium carbonate equivalent in 2020-21 to 469,000 tonnes in 2023-24.

    More positive sentiment for the lithium sector is, of course, likely good news for the Pilbara Minerals share price.

    It’s also likely helping boost those of fellow ASX 200 lithium stocks Allkem Ltd (ASX: AKE), Mineral Resources Limited (ASX: MIN), and Core Lithium Ltd (ASX: CXO).

    They’re gaining 7.1%, 2.9%, and 6.6%, respectively, right now.

    The post Why is the Pilbara Minerals share price surging 7% on Tuesday? appeared first on The Motley Fool Australia.

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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 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 Scott Phillips.

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  • Why is the Core Lithium share price surging 7% today?

    Rocket powering up and symbolising a rising share price.Rocket powering up and symbolising a rising share price.

    The Core Lithium Ltd (ASX: CXO) share price is surging higher today as Australian lithium exports are being tipped to rise.

    Core Lithium shares are lifting 7% and are currently trading at $1.135. For perspective, the S&P/ASX 200 Index (ASX: XJO) is rising 2.3% today.

    Let’s take a look at why this ASX lithium explorer is starting Tuesday on a high.

    Lithium exports predicted to rise

    Core Lithium shares may be rising, but it is not alone among ASX lithium shares. The Pilbara Minerals Ltd (ASX: PLS) share price is rising 7.69% today, while Allkem Ltd (ASX: AKE) is rising 7.59%.

    Global lithium giant Albemarle Corporation (NYSE: ALB) jumped 3.51% on the New York Stock Exchange overnight, while Lithium Americas Corp (NYSE: LAC) leapt 3%.

    However, closer to home, a positive outlook for Australian lithium exports could be providing lithium shares including Core Lithium with a boost today.

    Lithium exports are predicted to rise by 180% to $13.8 billion from 2022 to 2023, a new quarterly resources and energy report from the Federal Department of Industry reveals. However, lithium exports are then forecast to fall slightly to $12.9 billion from 2023 to 2024, as “prices ease”.

    The report also tipped lithium prices to soar 140% to US$3,528 per tonne from 2022 to 2023 before easing to US$2,745. Further, the report stated:

    World demand for lithium is estimated to increase from 583,000 tonnes of
    lithium carbonate equivalent (LCE) in 2021 to 724,000 tonnes in 2022.

    Over the following two years, demand is forecast to rise by over 40%, reaching 1,058,000 tonnes by 2024.

    Core Lithium is exploring the Finniss Lithium Project near Darwin Port in the Northern Territory.

    The company is targeting lithium concentrate production at this project in the first half of 2023.

    Core lithium share price snapshot

    The Core Lithium share price has soared 170% in the past year, while it has risen 92% in the year to date.

    For perspective, the S&P/ASX 200 Materials Index (ASX: XMJ) has jumped 6% in the last year.

    Core Lithium has a market capitalisation of more than $1.97 billion based on the current share price

    The post Why is the Core Lithium share price surging 7% today? appeared first on The Motley Fool Australia.

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    Motley Fool contributor Monica O’Shea 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 Scott Phillips.

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  • Why is the Sayona Mining share price rocketing 13% on Tuesday?

    A man clenches his fists with glee having seen the Lake Resources share price go up on the computer screen in front of him.

    A man clenches his fists with glee having seen the Lake Resources share price go up on the computer screen in front of him.The Sayona Mining Ltd (ASX: SYA) share price is having a very strong day.

    In morning trade, the lithium developer’s shares are up 13% to 25.5 cents.

    Why is the Sayona Mining share price storming higher?

    There have been a couple of catalysts for the strong gain by the Sayona Mining share price on Tuesday.

    The first is the market rebounding today following an exceptionally strong night of trade on Wall Street.

    Higher risk options, such as lithium shares, are performing particularly positively. This has seen the likes of Core Lithium Ltd (ASX: CXO) and Pilbara Minerals Ltd (ASX: PLS) push notably higher today.

    What else?

    Also giving the Sayona Mining share price a boost today is the release of an announcement.

    According to the release, a pre‐feasibility study (PFS) has been launched to look at the potential production of lithium carbonate at the North American Lithium (NAL) operation.

    The PFS will examine the option of producing lithium carbonate from spodumene produced at NAL, where production of spodumene concentrate is scheduled to commence from the first quarter of 2023.

    Management notes that the proposed move downstream is a significant potential value‐adding boost in enhancing the long‐term value and profitability of the NAL operation.

    ‘A significant increase in profitability’

    Sayona Mining’s managing director, Brett Lynch, commented:

    Moving downstream has always been the plan for Sayona in Québec to enable a significant increase in profitability, whether through lithium carbonate or hydroxide production.

    We look forward to examining the results of the PFS, as we work towards becoming a leading integrated producer and the largest in North America, amid accelerating demand from the battery and electric vehicle sector.

    The NAL project is co-owned with fellow lithium developer Piedmont Lithium Inc (ASX: PLL).

    The post Why is the Sayona Mining share price rocketing 13% on Tuesday? appeared first on The Motley Fool Australia.

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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. 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 Scott Phillips.

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  • Why are ASX 200 lithium stocks having such a stellar run on Tuesday?

    Man pointing at a blue rising share price graph.Man pointing at a blue rising share price graph.

    S&P/ASX 200 Index (ASX: XJO) lithium stocks are shooting higher today.

    The ASX 200 itself is up a very solid 2.3% in morning trade, following a strong run in US markets yesterday (overnight Aussie time).

    But the leading ASX 200 lithium stocks are running far hotter.

    The Pilbara Minerals Ltd (ASX: PLS) share price is up 6.4%, with $75 million worth of trades having taken place in the first 90 minutes of trading today.

    Meanwhile, shares in Allkem Ltd (ASX: AKE), formerly known as Orocobre, are up 7.1%, and the Core Lithium Ltd (ASX: CXO) share price is soaring 5.9%.

    So, what’s stoking investor interest on Tuesday?

    Why are ASX 200 lithium stocks shooting higher?

    Companies like Pilbara, Allkem and Core Lithium have been enjoying strong tailwinds amid booming growth in global EV markets.

    According to the Industry Department’s latest quarterly Resources and Energy Report, released today, 75% of the world’s consumption of lithium goes into rechargeable batteries.

    The report also notes that EV sales are expected to grow tenfold over the next decade. And Australia, the world’s biggest exporter of lithium, is well placed to make hay, producing 46% of the world’s lithium supply in 2020.

    In other good news for investors in ASX 200 lithium stocks, the Industry Department sees a strong run higher in lithium prices heading into 2023.

    According to the report: “We expect lithium hydroxide prices to lift from US$17,370 a tonne in 2021 to US$38,575 a tonne in 2022 and US$51,510 in 2023, and moderate to US$37,650 by 2024.”

    As for export earnings from the battery critical metal, the report notes:

    Australia’s lithium export earnings are forecast to increase by more than tenfold in just two years from $1.1 billion in 2020–21 to $13.8 billion in 2022–23, and ease to $12.9 billion by 2023–24.

    Revenue forecasts revised upwards

    Also likely piquing investor interest in ASX 200 lithium stocks today, is the Industry Department’s upwards revisions of lithium export revenues since its June 2022 quarterly report.

    That report estimated $4.1 billion in revenue for 2021-22, while the new figures come in at $4.9 billion.

    But that’s nothing compared to the 2022-23 forecast.

    The report states: “Notably, lithium exports are now forecast to rise by over 180% to $13.8 billion in 2022-23.”

    The Industry Department expects export revenues to dip to $12.9 billion in 2023-24 “as prices ease”.

    That easing shouldn’t be all too onerous for ASX 200 lithium stocks, however, if we bear in mind the $1.1 billion of export earnings in 2020-21.

    The post Why are ASX 200 lithium stocks having such a stellar run on Tuesday? appeared first on The Motley Fool Australia.

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    Motley Fool contributor Bernd Struben 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 Scott Phillips.

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  • Tesla just missed delivery estimates. Here’s why it’s time to buy

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

    A woman smiles over her shoulder as she sits in the driver's seat of a car with keys in hand.

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

    Tesla (NASDAQ: TSLA) is the largest and most widely followed electric vehicle (EV) company, so it should not be a surprise that its stock moved on its latest quarterly vehicle delivery report. What is surprising is which direction it went. 

    Shares dropped after the EV trailblazer reported third-quarter production and delivery results. Rather than bailing due to the lower-than-expected deliveries, investors should focus more on what the reaction means for the stock and what the underlying business is doing. That might change some sellers’ minds. 

    Look at production growth

    Tesla reported a quarterly record with almost 344,000 vehicles delivered. Investors expected more and the report triggered a sell-off in the stock.

    That reaction was despite the fact that those deliveries were 42% higher than the prior year period, and a 35% jump over the prior quarter. But none of those numbers are really what’s important for long-term investors. 

    What really mattered in that report was the nearly 366,000 vehicles Tesla actually produced in the third quarter.

    That alone represents a pace of 1.45 million vehicles produced annually. And that comes despite several headwinds the company is facing right now. Many EV makers are having trouble getting parts, but Tesla is navigating supply chain disruptions well. 

    The company has had to deal with lockdowns disrupting production at its Shanghai facility, and it is still working through the challenges associated with ramping up its two newest facilities in Austin, Texas and near Berlin, Germany. 

    Investors shouldn’t be worried about the discrepancy between produced vehicles and deliveries in the third quarter, however. All of its production has buyers, but the company said it is working to find enough “vehicle transportation capacity and at a reasonable cost”.

    Those logistics issues for shipping finished products are magnified thanks to the sharp increase in production growth. That’s a good problem to have and should really encourage investors rather than scare them. 

    Beyond just cars

    Tesla isn’t just about electric cars, either. The company will share its full third-quarter results on Oct. 19, 2022, and there will likely be other news items of interest from that.

    CEO Elon Musk has previously said he expects the Tesla Semi battery-electric truck to begin shipping this year and the Cybertruck next year. Those could both become further growth drivers for the company. 

    Tesla also should benefit from the Inflation Reduction Act (IRA) in several ways. The new law resumes tax credits for EV buyers for some manufacturers — including Tesla — that had surpassed prior production limits.

    Those credits previously ended after a manufacturer sold more than 200,000 vehicles. The IRA now has limits on vehicle list prices and requirements for more of the supply chain to be based in the US.

    Tesla’s lower-priced vehicles will be eligible under the price limit, and it already does some of its battery production domestically. The company is also now investigating whether to build a lithium refining facility in the US. 

    Its battery production gigafactories support internal production, but Tesla has also been increasing production of battery storage and solar systems that it sells to outside customers. In its second-quarter report, the company said it continues to ramp up Megapack storage production as customer interest “remains strong and well above our production rate”.

    Why would some sell the stock?

    However, some investors have a logical reason to sell the stock. Analysts expect earnings in the back half of 2022 to be 50% higher than the first half. If that comes to fruition, Tesla stock is already trading at a price-to-earnings (P/E) ratio of about 56 based on 2022 earnings. 

    That’s a high valuation in any market, and the recent market sell-off has many investors looking more for safety than risky assets.

    But Tesla believes it still has several more years where it will boost EV production at a 50% annual rate. That would bring the valuation down relatively quickly and could give long-term investors winning returns.

    Add in the other sides to its business, and it might be wise to take advantage of the recent drop in Tesla stock.

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

    The post Tesla just missed delivery estimates. Here’s why it’s time to buy appeared first on The Motley Fool Australia.

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    The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Tesla. 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 Scott Phillips.

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



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  • Guess which ASX mining share is surging 40% on a new lithium find

    a man sits at his desk wearing a business shirt and tie and has a hearty laugh at something on his mobile phone.

    a man sits at his desk wearing a business shirt and tie and has a hearty laugh at something on his mobile phone.The Eastern Resources Ltd (ASX: EFE) share price is surging higher on Tuesday.

    In morning trade, the lithium explorer’s shares are up 40% to 4.2 cents.

    Why is the Eastern Resources share price surging higher?

    The catalyst for the rise in the Eastern Resources share price on Tuesday has been the release of a very promising announcement.

    According to the release, Eastern Resources has become the latest mineral exploration company to report a significant discovery of lithium.

    The release notes that the company has identified significant wide LCT pegmatites at the Trigg Hill project in East Pilbara, Western Australia.

    This project is approximately 75km south-east of the Pilgangoora Lithium mine owned by Pilbara Minerals Ltd (ASX: PLS).

    Positive results

    Eastern Resources’ maiden drill program saw a total of 32 holes drilled for 1,972 metres. From these holes, 30 holes intercepted pegmatites. Furthermore, there was significant thickness of near surface pegmatites identified in multiple holes, up to 65m width from surface.

    Eastern Resources’ executive director, Myles Fang, was very pleased with the drilling results. He commented:

    We are highly encouraged with the discovery of significant wide LCT pegmatites at Trigg Hill project. The drill data information collected provides us significant information to progress the geological and metallurgical characterisation of the pegmatites at Trigg Hill Project.

    A total of 642 drill samples have now been transferred to Perth for analysis at Nagrom. The company plans to utilise the results of the initial phase of drilling to support further drilling planning and targeting.

    The post Guess which ASX mining share is surging 40% on a new lithium find appeared first on The Motley Fool Australia.

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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. 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 Scott Phillips.

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  • LiveTiles share price soars 22% on Bigtincan takeover news

    A man holds his glasses up to his forehead looking gobsmacked over ASX share price rises

    A man holds his glasses up to his forehead looking gobsmacked over ASX share price rises

    It has been a difficult 12 months for the LiveTiles Ltd (ASX: LVT) share price.

    But thankfully for its shareholders, there’s reason to smile at long last on Tuesday.

    In morning trade, the intranet and workplace technology software provider’s shares are up 22% to 6.6 cents.

    Why is the LiveTiles share price rocketing higher?

    Investors have been bidding the LiveTiles share price higher today after it was confirmed that the company has received a takeover proposal.

    According to the release, sales enablement platform provider Bigtincan Holdings Ltd (ASX: BTH) has tabled a confidential, non-binding, indicative proposal to acquire LiveTiles by way of scheme of arrangement.

    Under the indicative proposal, LiveTiles shareholders would be entitled to receive 7 cents per share, less any dividends, or distributions paid to shareholders from this day onwards. And while Bigtincan is offering cash to acquire the company, shareholders will be given the option to receive part of the consideration in the form of Bigtincan shares.

    Based on LiveTiles’ shares outstanding of 923,221,306, this implies a takeover price of approximately $65 million.

    However, it is worth noting that discussions between the two parties are preliminary in nature and no agreement has been reached. Bigtincan also warned that there is no certainty that any transaction will eventuate.

    LiveTiles has also responded to the news this morning and echoed Bigtincan’s warnings. It commented:

    The Board of LiveTiles will carefully consider the Proposal and advise shareholders of its views once the Proposal has been assessed. In the meantime, shareholders should not take any action in response to the Proposal. There is no certainty that the Proposal will lead to a definitive transaction or offer being made for LiveTiles.

    The post LiveTiles share price soars 22% on Bigtincan takeover news appeared first on The Motley Fool Australia.

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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. has positions in and has recommended BIGTINCAN FPO and LIVETILES FPO. The Motley Fool Australia has positions in and has recommended BIGTINCAN FPO. The Motley Fool Australia has recommended LIVETILES FPO. 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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  • Are CSL shares ‘starting to look more attractive’ in October?

    Two happy scientists analysing test results in a labTwo happy scientists analysing test results in a lab

    The share price of S&P/ASX 200 Index (ASX: XJO) healthcare giant CSL Limited (ASX: CSL) outperformed last month. Could it be gearing up to do the same this month?

    While experts are notably bullish on the biotech stock, the company is reportedly facing growing risks overseas.

    The CSL share price is trading at $287.45 right now. That’s 2.9% lower than it started 2022.

    Meanwhile, the ASX 200 has dumped 14.9% so far this year while the S&P/ASX 200 Health Care Index (ASX: XHJ) has slipped 11.9%.

    So, what might October hold for the ASX 200 healthcare favourite? Let’s take a look.

    What might October bring for CSL shares?

    Plenty of brokers are bullish about the future of the CSL share price.

    Indeed, Citi has tipped it to surge to a record-breaking $340 – representing a potential 18% upside, as my Fool colleague James reports.

    Meanwhile, brokers Macquarie, Morgans, and Morgan Stanley have slapped the stock with respective $329.50, $321.20, and $323 price targets, with various factors driving their outlooks.

    Now, Alphinity portfolio manager Stuart Welch has joined the chorus tipping big things for the ASX 200 favourite. The fundie said the company’s valuation is “starting to look more attractive relative to its history”. He told Livewire:

    We’re certainly seeing a lot more donors coming into [plasma] donation centres and those volumes are ramping back up. Whilst that takes some time to come through the [profit and loss], because there is a seven-to-nine-month manufacturing cycle that you got to get through first, we are confident that that recovery is coming. And putting that together, volume recovery together with a bit of price, you can see a return to margin recovery as well.

    But not everything appears bright for the company. Europe’s growing energy crisis might impact many of its factories and research and development centres, The Australian reports. Though, CSL is said to be preparing for all eventualities.

    The company’s chief financial officer Joy Linton was quoted by the publication as saying:

    CSL has been monitoring the European energy situation closely, particularly as it relates to energy supply for our Marburg site in Germany.

    The EU Gas Emergency framework prioritises companies providing critical, lifesaving therapies so we have some assurance through that. We also have robust contingency plans that can be put in place at relatively short notice.

    Additionally, not all brokers are bullish on the stock. Goldman Sachs, for instance, has a neutral rating and a $291 price target on CSL shares.

    The post Are CSL shares ‘starting to look more attractive’ in October? appeared first on The Motley Fool Australia.

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    Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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 positions in and has recommended CSL Ltd. and Goldman Sachs. 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 Bitcoin price outperform the NASDAQ in September?

    A young woman wearing work wear in an office setting has a lively, happy, open-mouthed expression of joy while holding a bitcoin token.A young woman wearing work wear in an office setting has a lively, happy, open-mouthed expression of joy while holding a bitcoin token.

    The Bitcoin (CRYPTO: BTC) price has closely mirrored the moves in risk assets for most of 2022. With the caveat that the price moves of the world’s biggest crypto tend to be much larger. Both on the up and the down swings.

    With the US Federal Reserve, and central banks the world over, ramping up interest rates, risk assets have come under tremendous pressure this calendar year.

    From the beginning of trading in January through to 1 September, the Nasdaq Composite (NASDAQ: .IXIC) – a good proxy for investor risk appetite – fell 25%. The Bitcoin price dropped a precipitous 48% in that same time.

    See what we mean.

    But something odd happened in September.

    Bitcoin price begins to decouple from equities

    As central banks continued their aggressive tightening policies and guidance, September proved to be another tough month for stocks.

    Sticking with the NASDAQ, the tech-heavy index fell 10.5% over the month.

    With that in mind, we might have expected a 20% fall in BTC.

    But here’s the thing.

    The Bitcoin price kicked off September trading for US$20,105 and finished the month at US$18,694. (Give or take a few tens of dollars, depending on your time zone.)

    That puts the world’s biggest token down just 2% over the month. That’s less than a fifth of the losses posted by the NASDAQ.

    What’s going on?

    The Bitcoin price did see some noticeable swings in September, hitting highs of US$22,673 and lows of US$18,290, according to data from CoinMarketCap.

    But the fact that it held up so much better than the broader tech sector indicates the token is finding significant support at these levels.

    Part of that looks to be due to increasing influence from long-term crypto investors as speculator influence wanes.

    According to Stephane Ouellette, chief executive of FRNT Financial Inc: “Followers of the ecosystem have been excited to see correlations with risk assets begin to break, meaning the ‘fast-money’ speculative crowd may be losing their influence on the space.”

    As for October?

    The Bitcoin price is currently at US$19,543.

    The post Why did the Bitcoin price outperform the NASDAQ in September? appeared first on The Motley Fool Australia.

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    Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin. The Motley Fool Australia has positions in and has recommended Bitcoin. 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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