Category: Stock Market

The S&P/ASX 200 Index (ASX: XJO) enjoyed yet another day of gains on the markets on Tuesday, albeit with a dent at the end of the trading day. The ASX 200 ended up finishing at 7,527.9 points, up 0.19%.

This gain is just the latest chapter in what has been a very successful month for the index. Over the past month, the ASX 200 has now gained a healthy 6.95%. And although the index is still in the red for 2022 so far, its fall is only under 1%. That’s not a bad turnaround for an index that had shed almost 10% of its value by the end of January.

But now that the ASX 200 has staged such a robust recovery and is back above 7,500 points, many investors might be wondering how long we have to go until we are once again at a record high.

So how high has the ASX 200 Index ever been?

Well, the ASX 200’s current high watermark is 7,632.8 points. That’s the peak we saw back in mid-August last year. Prior to that date, the index had been on a tear, rising more than 15% between the start of 2021 and the record high. It was only in May 2021 that the index exceeded its previous, pre-COVID, all-time high too. But, as is obvious, the share market has more or less treaded water ever since.

Even so, the rally we have seen since early March would, no doubt, be encouraging for ASX investors. Now, there are only another 104.9 points, or 1.39%, of gains left before we’re once again at a record high for the ASX 200. Let’s see how long it takes to get there!

The post What is the highest the ASX 200 has ever been? appeared first on The Motley Fool Australia.

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• High voltage! Origin (ASX:ORG) share price up 3% to new 52-week high
• Here’s why ASX 200 shares still have ‘a pretty good growth outlook’
• ASX 200 (ASX:XJO) midday update: IGO dealt blow, Block’s data breach, Xero jumps
• 5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor Sebastian Bowen 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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ASX green metals are in demand lately, but could a bubble be forming in the green metals sector?

So-called ‘green metals’ are those used in cleaner-energy applications. Such shares on the ASX include Pilbara Minerals Ltd (ASX: PLS), Firefinch Ltd (ASX: FFX), and Mineral Resources Ltd (ASX: MIN). Others include Centaurus Metals Limited (ASX: CTM) and Liontown Resources Limited (ASX: LTR).

So what is the outlook for ASX green metals shares?

Green metal transition

Green metals are metals that will be prominent in the transition from fossil fuels to clean energy. They include lithium, graphite, rare earths, nickel, and copper.

Asked if a bubble could be developing in the sector, Argonaut Natural Resources Fund portfolio manager David Franklyn told the Australian Financial Review:

The green materials sector is certainly volatile, which in part reflects the fact that demand is rising quicker than supply. This has been evident in the huge increase in spodumene prices and the spike in nickel prices.

Against that backdrop, it’s not unexpected that the sector may attract speculative money whilst also making the valuation of stocks more problematic.

A stock market bubble can form when there is a significant surge in share prices beyond the fundamental value of the companies.

Franklyn noted there has been a strong rebound of multiple lithium stocks in March, including Pilbara and Firefinch.

Share price recap

The Pilbara Minerals share price has soared 26% in a month while Firefinch has rocketed 73%. Meanwhile, Mineral Resources has gained 24%, Liontown Resources has leapt 28%, and Centaurus Metals has surged 17%.

In contrast, the S&P/ASX 200 Index (ASX: XJO) has jumped just under 6% in a month.

The post Is a bubble forming for ASX green metals shares? appeared first on The Motley Fool Australia.

More reading

• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• Mineral Resources share price leaps on ‘unprecedented’ lithium demand update
• 2 lithium ASX shares to buy in April 2022: experts
• 3 ASX shares to buy in the hottest sector right now: experts
• The Pilbara (ASX:PLS) share price soared 18% in March. Here’s why

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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Yesterday, we took a look at the ASX’s worst-performing exchange-traded funds (ETFs) over the quarter just ended. The three months to 31 March was a relatively volatile period for ASX shares, even though the S&P/ASX 200 Index (ASX: XJO) ended up recording a gain of 0.7% for the quarter. 

But now it’s time to check out the ASX ETFs that shone during the three months just gone. So here are the ASX’s best ETFs of the March quarter. See if you can spot a theme. 

The 5 best-performing ASX ETFs of the March quarter

VanEck Gold Miners ETF (ASX: GDX)

This ETF from VanEck does exactly what it says on the tin. GDX invests in a portfolio of global gold miners. The ASX’s Newcrest Mining Ltd (ASX: NCM) is there, but so are internationally-based companies like Newmont Corp and Barrick Gold. GDX gave investors a healthy 17.25% return over the March quarter.

BetaShares Australian Resources Sector ETF (ASX: QRE)

BetaShares runs this resources ETF. QRE invests in ASX’s metals, mining and energy shares. You’ll find everything from BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO) to Newcrest Mining and Woodside Petroleum Limited (ASX: WPL) here. As well as some smaller miners like Nickel Mines Ltd (ASX: NIC) and Liontown Resources Limited (ASX: LTR). QRE returned 17.77% over the quarter just passed. 

SPDR S&P/ASX 200 Resources Fund (ASX: OZR)

This ETF from State Street Global Advisors is a very similar ETF in scope and composition to QRE, which explains its near-identical return. It also invests in the ASX’s metals, mining and energy shares. You’ll find virtually the same companies in this ETF as the BetaShares fund. OZR had a corker of a quarter, rising 17.82% over the three months to 31 March.

BetaShares Global Energy Companies ETF (ASX: FUEL)

Here we have yet another resources-based ETF. But this one is a little different to the previous two funds. FUEL only invests in energy shares, or oil and gas companies. But this ETF is globally-based, and not just confined to the ASX. You’ll find energy giants like Chevron, Exxon Mobil, BP and Royal Dutch Shell here. This fund returned a pleasing 24.04% over the March quarter. 

BetaShares Crude Oil Index ETF (ASX: OOO)

Our final and best performing ASX exchange-traded fund of the March quarter is this fund from BetaShares. OOO is an ETF that tracks the price of oil futures, and not individual companies. As such, its investors have benefitted enormously from the rise in oil prices that we’ve seen in recent months. OOO returned a whopping 39.26% over the three months to 31 March. 

The post Here are the 5 best-performing ASX exchange-traded funds over the March quarter appeared first on The Motley Fool Australia.

More reading

• What sent ASX mining shares flaming higher in March?
• 3 fantastic ETFs for ASX investors to buy
• 3 top ETFs for ASX investors in April
• Here are 4 popular ETFs for ASX investors to check out
• 3 top international ETFs for ASX investors to look at this month

Motley Fool contributor Sebastian Bowen owns Chevron and Newcrest Mining Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended BetaShares Global Energy Companies ETF – Currency Hedged. 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 Temple & Webster Group Ltd (ASX: TPW) share price went up by more than 6% on Tuesday to $7.05 a share. But what might have sent the business higher today?

Temple & Webster is one of the fast-growing e-commerce ASX shares. In the company’s recent FY22 half-year result, it reported revenue of $235.4 million, which was a 218% increase compared to the first half of FY20.

Investors may have been responding to a new report finding e-commerce sales are expected to keep growing strongly. The forecast comes from one organisation that is close to the online shopping boom.

Australia Post’s e-commerce report

In its 2022 e-commerce industry report, Australia Post said that it is enabling small and medium businesses to pivot to online shopping with its 4,300-strong post office network.

The delivery business says that there are now 9.2 million Australian households shopping online.

“It’s evident the pandemic has changed the way we shop, and new habits formed over the past two years are now firmly ingrained,” the report said.

Australia Post suggests that retailers need to offer a great end-to-end customer experience, saying it’s paramount to growing and maintaining a loyal customer base.

Certainly, Temple & Webster says that it wants to offer customers a strong proposition. It aims to do this by being a trusted brand, offering a large range of quality products and a great user experience to attract customers, grow its conversion rate, and increase customer satisfaction. Its active customers grew 34% to 906,000 in HY22 and revenue per active customer grew 10%.

Australia Post also suggested that retailers need to know every detail of their products and provide thorough information, supported by images, video, or even virtual reality.

Temple & Webster has been investing in data and technology. It has a 3D/augmented reality offering to complement existing 2D imagery on its product pages. The company is currently testing a number of augmented reality cases using 3D images. Its goal is to have the largest 3D catalogue of furniture and homewares in Australia. This could impact the Temple & Webster share price over the longer-term.

Australia Post also made the following comments about where it expects e-commerce spending to go:

Looking ahead, we expect online shopping to continue to grow much faster than physical retail. It’s clear Australians have grown to love the ease and convenience of buying online and are likely to continue doing so regularly throughout 2022.

Australia Post also cited a survey where 93% of respondents said that they’ll maintain or increase their online shopping activity in 2022.

E-commerce sales to double?

According to reporting by the Australian Financial Review, Australia Post’s CEO expects online shopping revenues to double over the next five years compared to the $62.3 billion it earned last year.

Australia Post CEO Paul Graham said:

81% of all households shopp[ing] online is an amazing statistic but still shows we are not as penetrated as Europe or the United Kingdom, so there is still upside to go.

We are still lagging global trends in terms of the total online spend and the purchasing frequency. If you take South Korea, 53% of shoppers are buying at least weekly, which is more than double Australia’s figure of 25%, so there is still significant growth to come for the Australian market.

Temple & Webster share price snapshot

Despite today’s jump, the Temple & Webster share price is still down 35% in 2022.

The post Is this why the Temple & Webster share price surged over 6% today? appeared first on The Motley Fool Australia.

More reading

• 2 high-growth ASX shares to buy today: brokers
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• Temple & Webster (ASX:TPW) share price hits 52-week low, top broker tips 90% upside
• 2 ASX growth shares to buy this month: experts
• Leading brokers name 3 ASX shares to buy today

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. owns and has recommended Temple & Webster Group Ltd. The Motley Fool Australia has recommended Temple & Webster Group Ltd. 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 Insurance Australia Group Ltd (ASX: IAG) share price has had a rough run over the last couple of weeks, driven by news regarding 2 major legal battles.

The company has released updates on both February’s second business interruption test case and a legal suit brought against it in the Federal Court.

As of Tuesday’s close, the IAG share price is $4.40. That’s 4.55% lower than it was a fortnight ago.

For context, the S&P/ASX 200 Index(ASX: XJO) has gained 2.54% in that time.

Let’s take a closer look at the news that’s been weighing on the insurance giant’s stock lately.

What’s been dragging the IAG share price lower?

Second business interruption test case

The IAG share price has been slipping since it released an update on the second business interruption test case 2 weeks ago.

In that update, the company noted that the 28-day deadline for policyholders to lodge an application to seek leave to appeal the judgment from the Federal Court, handed down on 21 February, had passed.

It stated that some policyholders had appealed for special leave regarding some aspects of the judgement. Additionally, IAG had filed an application for special leave to appeal the finding on JobKeeper payments.

IAG stated that it believes a release from the provision will go ahead. The company said that will probably be recognised over time.

However, it’s not adjusting its $1,222 million net provision for business interruption claims. Though, it said it will adjust its predicted claims costs and provision accordingly as more certainty emerges.

The IAG share price slipped 1.3% on the release of the update.

Plot twist in Greensill drama

Though, the IAG share price was in the green yesterday following a plot twist regarding claims made against it in the Federal Court, reportedly worth nearly $300 million.

The company is battling against claims that it’s liable to payout insurance policies connected with the now-defunct Greensill Capital.

The insurance policies were covered by Bond and Credit Co, of which IAG used to own a 50% stake. It sold the stake to Tokio Marine in 2019.

However, Tokio Marine made headlines yesterday when it announced it believes the policies were fraudulently obtained by companies connected to Greensill’s founder, Lex Greensill.

“In light of those fraudulent misrepresentations and fraudulent breaches of an insured’s duty of disclosure, Tokio Marine has today advised counterparties that these policies and related obligations are void from inception,” the insurer said in a statement.

“Tokio Marine will vigorously defend any claims against it and against BCC relating to any policies purportedly issued to Greensill.”

In response to Tokio Marine’s statement, IAG released a price sensitive announcement to the market yesterday.

It once again maintained it had no net insurance exposure to trade credit policies sold through BCC.

It also said that it’s continuing to work with Tokio Marine to defend claims and litigation asserting otherwise.

IAG share price snapshot

Following its recent tumble, the IAG share price is back into the year to date red.

Right now, it is 1.3% lower than it was at the start of 2022. It has also slumped nearly 9% since this time last year.

The post The IAG share price has dumped 5% in 2 weeks. What’s happening? appeared first on The Motley Fool Australia.

More reading

• Why did the IAG share price underperform the ASX 200 by 11% in March?
• Owns IAG (ASX:IAG) shares? Here’s your outlook for April
• Have IAG shares been a good investment? Here’s what $10,000 invested 4 years ago looks like now
• What’s driving the IAG (ASX:IAG) share price lower on Wednesday?
• ASX 200 (ASX:XJO) midday update: Block and Zip jump, Fisher & Paykel Healthcare sinks

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 owns and has recommended Insurance Australia Group 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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The Qantas Airways Limited (ASX: QAN) share price edged higher following an update from the Australian Competition & Commission (ACCC).

At Tuesday’s market close, Qantas shares ended the day up 0.19% to $5.17.

Let’s take a closer look at what was released to the ASX today.

ACCC proposes not to take enforcement action over Qantas acquisition

Before market open, Brisbane-based airliner, Alliance Aviation Services Ltd (ASX: AQZ) released a statement from the ACCC regarding Qantas’ 19.9% acquisition of the company.

Alliance advised that the ACCC wrote a letter stating that it will not take any further enforcement action in relation to the takeover.

Qantas secured the minority stake in Alliance during 2020 for roughly US$45 million.

At the time, alarm bells rang as the competition watchdog signalled its concerns about Qantas’ monopoly in the domestic travel market.

While no action has been taken since the investigation began 3 years ago, this could change.

The ACCC said that it will continue to monitor Qantas’s conduct in the industry regarding the acquisition, and action could happen at a later date.

Nonetheless, the news appears to not have bothered investors, with the Qantas share price travelling slightly higher.

On the other hand, the Alliance Aviation share price lifted 1.87% to $3.82 apiece.

Qantas share price snapshot

Since the start of 2022, Qantas shares have travelled on a rollercoaster, posting a gain of around 3%.

However, when looking at a larger time frame such as the last 12 months, its shares are relatively flat.

Qantas commands a market capitalisation of roughly $9.74 billion, making it the 60th largest company on the ASX.

The post What happened to the Qantas share price today? appeared first on The Motley Fool Australia.

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• Why AGL, Alliance Aviation, Woodside, and Xero shares are charging higher
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• ‘Key to our future’: What’s going on with the Qantas share price today?
• Why is the Qantas share price lifting today?
• Finally! 4 travel ASX shares ready to take off: expert

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. owns and has recommended Alliance Aviation Services Ltd. The Motley Fool Australia owns and has recommended Alliance Aviation Services Ltd. 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 Northern Star Resources Ltd (ASX: NST) share price has surged in the past couple of months.

Since 4 February, Northern Star shares have gained around 23%, making it one of the best performers across the sector. For comparison, fellow miner Newcrest Mining Ltd (ASX: NCM)’s share price increased by 21% across the same time frame.

At the time of writing, Northern Star shares are swapping hands for $10.51, down 1.96%.

What’s happened to the Northern Star share price?

Lately, the acceleration in the price of gold has boosted investor sentiment, likely helping the Northern Star share price.

Traditionally, investors flock to the yellow metal as a safe-haven asset when there is uncertainty in the market.

While the world is slowly moving past COVID-19, the war between Russia and Ukraine has sparked a gold rush.

Earlier this month, the price of gold soared above the US$2,000 barrier but has since fallen a touch under. Currently, gold is fetching US$1,927 an ounce.

Back on 4 February, the precious metal was fetching around US$1,808. This represents an increase of about 7% over the two-month period.

As such, Northern Star shares have risen from $8.54 at the time.

It’s worth noting the price of gold spiked to an all-time high of US$2,072.90 on 7 August 2020. Northern Stars shares closed at $15.89 on the day.

However, you may be wondering why the company’s share price is nowhere near the level it was in 2020, given the price of gold is almost the same.

This is likely due to other macroenvironmental factors such as the United States Federal Reserve’s intent on lifting interest rates this year. The government body noted that inflation accelerated to 6.9%, the highest rate in nearly four decades.

Following along, the Reserve Bank of Australia is being tipped to hike rates twice in 2022.

Rising interest rates drag down the price of precious metals, and investors are apparently mixed for the moment.

What do the brokers think?

A number of brokers believe the Northern Star share price is trading at a bargain price.

Last month, Morgan Stanley slashed its outlook on Northern Star shares by 3% to $12.80 per share. Based on the current share price, this implies a potential upside of 22% for investors.

While the broker reduced its assessment on Northern Star, it still sees value in the gold miner.

On the other hand, UBS raised its outlook on the company’s shares by 11% to $12.00. Its analysts believe Northern Star shares still have some room to bounce higher.

The post Why has the Northern Star (ASX:NST) share price gained 23% in 2 months? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
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• The Northern Star (ASX:NST) dividend is being paid today. Here’s the lowdown
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Motley Fool contributor Aaron Teboneras owns Northern Star Resources 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 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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March was an alright month for the APA Group (ASX: APA) share price despite no price sensitive news being released by the company.

The energy infrastructure company’s stock gained 6.17% last month, ending March trading at $10.67.

That was just a few cents off its 52-week high of $10.88, reached in intraday trade on 31 March.

However, APA’s gains weren’t enough for it to outperform the S&P/ASX 200 Index (ASX: XJO). The index gained 6.39% last month, beating the APA share price’s performance by a measly 0.22%.

So, what might have driven the S&P/ASX 200 Utilities Index (ASX: XJO) constituent’s stock in March? Let’s take a look.

What boosted APA’s stock last month?

The APA share price performed in line with the broader market in March, as did the ASX 200 utilities sector.

The 3-stock strong sector recorded a gain of 6.69% last month, driven by the Origin Energy Ltd (ASX: ORG) share price’s 9.3% rise.

Though, a small amount of news regarding APA did hit the market in March.

An update on a feasibility study into delivering low-cost hydrogen conducted by a consortium involving APA dropped late last month.

The consortium also includes Pilot Energy Ltd (ASX: PGY) and Warrego Energy Ltd (ASX: WGO).

Pilot Energy told the market that the feasibility study is looking good so far. It’s set to be completed in the coming weeks.

Additionally, 4 of the company’s projects were recently selected to receive a share of $50.3 million under the Morrison Government’s national gas infrastructure plan.

Their selection was announced by Minister for Industry, Energy, and Emissions Reduction, Angus Taylor on 22 March.

The APA projects set to receive a share of the cash are Victoria’s Southwest pipeline expansion project, Queensland’s Project Range project and Surat Hub project, and Australia’s East Coast Gas Grid Expansion Stage 2.

APA share price snapshot

Despite trading relatively in line with the ASX 200 last month, the APA share price has outperformed it year to date.

Right now, the infrastructure company’s stock is 3.3% higher than it was at the start of 2022. Over that same period, the ASX 200 has slipped nearly 0.9%.

The post Here’s what happened to the APA share price in March appeared first on The Motley Fool Australia.

More reading

• 2 defensive ASX dividend shares offering reliable income
• Why did the APA (ASX:APA) share price just ink a new 52-week high?
• The APA (ASX:APA) share price is up $1 in 7 years. Have the dividends been worth it?
• Are analyst upgrades on the way for APA (ASX:APA) shares?
• Here’s why the APA (ASX:APA) share price could be a top dividend share

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 owns and has recommended APA Group. 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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After a decent start to the day, the Webjet Limited (ASX: WEB) share price is trading lower this afternoon.

At the time of writing, the online travel agent’s shares are down 0.5% to $5.47.

This means the Webjet share price is trading largely flat in 2022.

Where next for the Webjet share price?

According to the team at Goldman Sachs, its analysts believe the Webjet share price could take off from here.

This morning Goldman retained its buy rating and $6.90 price target on the company’s shares. This implies potential upside of 26% for investors over the next 12 months.

What did the broker say?

Webjet remains the broker’s top pick in the sector. Its analysts prefer the company to rival Flight Centre Travel Group Ltd (ASX: FLT), with the latter getting only a neutral rating and $19.50 price target.

In respect to the travel market, the broker believes that pent up demand will offset inflationary pressures. It commented:

“Despite the inflationary macro environment, we believe the outlook for travel remains relatively protected due to pent-up demand for travel as well as strong consumer health from an economic perspective. Domestically in Australia, our expectations are for consumption to remain robust at c. 6.7% CAGR over FY22-24e on a nominal basis with the lifestyle services category (travel, entertainment etc) expected to see the best growth at c. 10.8% CAGR over the same period.”

But the main reason that Goldman is positive on the Webjet share price is the WebBeds business to business (B2B) business. It explained:

“Webbeds is the 2nd largest Bedbanks operator globally with Hotelbeds, the number 1 player, remaining a strong market leader. Management estimates the addressable market for the Bedbanks business to be at c. A$70bn, representing c. 8.8% of the accommodations market.

At the other end of the COVID crisis, while questions remain about the permanent closure of some individual hotels, we believe that the Bedbanks businesses will remain beneficiaries of the recovery due to their broader distribution ability which is a positive in the constrained demand environment.

Separately, we expect the Webbeds business to be more efficient coming out of the pandemic driven by greater efficiencies from streamlining of platforms and ERP and other initiatives which the group expects to deliver c. 20% increase in cost efficiencies.”

The post Why this broker thinks the Webjet share price can fly 26% higher appeared first on The Motley Fool Australia.

More reading

• Here’s why the Flight Centre share price is taking off today
• How did the Webjet share price travel in March?
• These are the 10 most shorted ASX shares
• Top brokers name 3 ASX shares to buy next week
• Federal budget: Goldman Sachs names 4 ASX shares to buy

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 recommended Flight Centre Travel Group Limited and Webjet Ltd. 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 Bitcoin (CRYPTO: BTC) price is up 1.5% over the past 24 hours, currently trading for US$46,695 (AU$61,611).

Depending on your dateline, Bitcoin will have kicked off April somewhere around US$47,397, though it had some wild swings on the first day of the month.

With the world’s biggest crypto by market cap enjoying a range of tailwinds last month, the Bitcoin price finished March up 20%.

But that’s virtual water under the bridge.

What crypto investors want to know now, of course, is what to expect for the Bitcoin price in April.

Where to next for the Bitcoin price?

Over the past few months, cryptos have moved similarly to risk assets, like high-growth tech shares.

With risk appetite rebounding, the Bitcoin price has done well.

Looking to April and beyond, DeVere Group chief executive Nigel Green says crypto investors should keep a close eye on the key psychological price barrier of US$50,000.

If the Bitcoin price were to “surge through this key price marker, we expect the current bull run would become supercharged as crypto FOMO [fear of missing out] would kick in – as it typically does when Bitcoin prices shoot up,” Green said.

Green said that as prices rebound, it will remind people sitting on the sidelines that cryptos are the “future of money”:

As such, prices are set to skyrocket over the long term – and both institutional and retail investors will not want to miss out on the ‘early advantage’ edge. Watching others make decent returns during a good rally may make you feel obligated to join in and get in on the gains.

“The world is racing towards a digital revolution and as investors increasingly pay attention to this, the long-term trajectory for Bitcoin, surely, has to be upward,” he added.

Still rangebound

While the Bitcoin price has toyed with breaking above its key resistance level, hitting US$48,087 last week, it’s been stuck in the US$30,000 to US$50,000 range since 5 December.

That, according to co-founder of Bitcoin IRA Chris Kline, may not bode well for the Bitcoin price in the shorter term.

According to Kline (quoted by Bloomberg):

There seems to be a range where Bitcoin starts to look like a pong game. There are headwinds across markets, not just in crypto. We’ve got inflation that is not transitory. There’s uncertainty around rate hikes and conversations about a recession. There is a lot of waiting on the sidelines.

Regardless of whether the next big move for the Bitcoin price is up or down, senior portfolio manager at UBS Asset Management Jeremy Zirin sounded a note of caution for crypto investors.

“From an investment standpoint, it should be viewed as something that is highly speculative and should not be a meaningful part of a client portfolio because of its very high levels of volatility and just uncertain utility over time,” he said.

“I see it more as a speculative component of one’s portfolio.”

Indeed, from a speculative perspective, the Bitcoin price is down 32% from its 10 November all-time high of US$68,790, while it’s up 40% from its 24 January low of US$33,184.

Invest with care.

The post What’s the outlook for the Bitcoin price in April? appeared first on The Motley Fool Australia.

More reading

• Why cryptos like Bitcoin are ‘no longer in the fringes’
• Another crypto is buying $13 billion of Bitcoin. Here’s why
• Here’s what moved the Bitcoin price 20% higher in March
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• Mining Bitcoin is 3.5 times more expensive than digging up gold

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Bitcoin. The Motley Fool Australia owns and has recommended Bitcoin. 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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