Category: Stock Market

The Fortescue Metals Group Limited (ASX: FMG) share price is currently up around 2%. This is on the day on a high level of ASX share market volatility relating to the Omicron COVID-19 variant.

Despite the volatility, there is some company-specific news about Fortescue today.

Fortescue links up with a digital auction platform

According to reporting by the Australian Financial Review, the large iron ore miner is planning to sell some of its iron ore through the GLX Connect platform, which is a commodity trading service.

This is the same platform that has enabled Pilbara Minerals Ltd (ASX: PLS) to achieve some very high prices for sale of its lithium.

If the deal goes ahead, then Fortescue will also become a shareholder in GLX Digital, the owner of the auction platform. The iron ore miner will initially get less than 1% of the shares, but could get more as it conducts auctions on the platform.

One of the attractions of GLX Connect is that it empowers the seller by allowing it to design and manage its own auction terms. It also allows the seller to “manage counter-party risk by choosing who is invited to participate in auctions.”

The participants in the auction are supposedly attracted to the precise terms, including the volume and delivery schedules.

The AFR reported that access to the platform will cost Fortescue US$100,000 a year for three years, though the deal hasn’t been signed yet.

However, at least to start with, Fortescue is only going to sell a small amount on the platform.

Time will tell whether this has an impact on the Fortescue share price over the longer-term.

A spokesman for the iron ore miner said to the AFR:

Fortescue is exploring the potential to trial new platforms to complement our existing sales and marketing channels. The majority of Fortescue’s products will continue to be sold via existing contractual seaborne arrangements, as well as our portside sales entity FMG Trading Shanghai.

Other initiatives to get a better price

It was also reported that Fortescue is now selling at least six different iron ore products, with one of those being a higher grade offering. When the Iron Bridge project is finished, that is expected to lead to another, higher quality product.

The AFR reported that Fortescue is working at Chinese ports to sell smaller volumes of iron ore to new, smaller customers that may not want to buy the same volume as Chinese steel mills. Some of these deals are being done in Chinese currency, rather than US dollars.

Is the Fortescue share price good value?

Opinions are mixed on the business. One of the latest opinions comes from Credit Suisse, which is ‘neutral’ on the business but the price target is $13.50 – approximately 20% lower than today. The broker is expecting the iron ore price to hit a low in December.

Then there’s Morgan Stanley which rates Fortescue as a sell/underweight with a price target of just $12.50 on concerns of a lower iron ore price and a bigger discount for Fortescue’s lower grade iron.

One of the most positive brokers about the business is Macquarie Group Ltd (ASX: MQG) with a buy/outperform rating and a price target of $21.

The post Could this help Fortescue (ASX:FMG) mitigate the risks of falling iron ore prices? appeared first on The Motley Fool Australia.

More reading

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• When might Fortescue (ASX:FMG) Future Industries become profitable?
• These were the best performing ASX 200 shares last week
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• Here are the top 10 ASX shares today

Motley Fool contributor Tristan Harrison owns shares of Fortescue Metals Group 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 Macquarie 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 PayGroup Ltd (ASX: PYG) share price was well into the green in early morning trade, up 2.2%. It’s since given up those gains and is currently down 2.2%

PayGroup shares may be getting impacted by the wider Omicron variant led market selloff, which is seeing the All Ordinaries Index (ASX: XAO) down 0.6% at time of writing.

Below, we take a look at the Software as a Service (SaaS) company’s half year results for the 6 months ended 30 September (1HFY22).

What half year results were reported?

The PayGroup share price is wobbling despite the company reporting an 83% increase in statutory revenue of $12.8 million.

New contracts signed reached a record $9.6 million, up 78% on the prior corresponding period.

Normalised earnings before interest, taxes, depreciation and amortisation (EBITDA) of $1.5 million, excluding one-off expenses and acquisition costs, slipped from $1.8 million in 1HFY21. PayGroup said that this figure incorporates continued investment in its platform capabilities for future growth.

The company said that it is currently servicing more than 2,500 enterprise customers.

Commenting on the half year results, PayGroup’s managing director Mark Samlal said:

Our strong operational performance and continued investment in our platform underpins our ability to scale the payroll business, expand margins and execute on key monetisation opportunities going forward.

We have made significant progress to date and are excited by the organic opportunities in FY22 and beyond. This is reflected in the growth of our current pipeline, which is 6 times larger than 12 months ago. We are highly confident that we have the right foundations in place and remain focused on delivering on key organic opportunities to drive sustainable long-term growth.

Samlal also reaffirmed the company’s guidance. “We have affirmed FY22 ARR [annual recurring revenue] guidance of at least $37 million and provided FY22 statutory revenue guidance of $26 million, which represents more than 95% of the exit ARR announced at FY21,” he said.

PayGroup share price snapshot

The PayGroup share price has struggled in 2021, down 28%. That compares to 10% year-to-date gain posted by the All Ords.

Over the past month, PayGroup shares are down 16%.

The post PayGroup (ASX:PYG) share price wobbling on half year revenue surge appeared first on The Motley Fool Australia.

More reading

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• With the IAG (ASX:IAG) share price trading around decade-lows, is now the time to buy?
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• Here’s why this top broker is tipping 40% upside for the AGL (ASX:AGL) share price
• ASX 200 (ASX:XJO) midday update: Omicron hits Flight Centre, Domino’s jumps

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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With so many shares to choose from on the ASX, it can be hard to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you.

Three top ASX shares leading brokers have named as buys this week are listed below. Here’s why they are bullish on them:

Adairs Ltd (ASX: ADH)

According to a note out of Morgans, its analysts have retained their add rating and lifted their price target on this homewares retailer’s shares to $4.80. The broker notes that Adairs is acquiring Focus on Furniture for $80 million. Morgans is pleased with the purchase and expects it to complement its core business and provide network expansion opportunities. All in all, the broker feels Adairs’ shares are cheap at the current level, particularly given the company’s attractive growth and dividend profile. The Adairs share price is trading at $3.66 today.

Aristocrat Leisure Limited (ASX: ALL)

A note out of UBS reveals that its analysts have retained their buy rating and $53.60 price target on this gaming technology company’s shares. UBS has been looking at Aristocrat’s market position and notes that it is outperforming other gaming machine manufacturers significantly with four of the top five premium cabinets in the market. This bodes well for its future growth. The Aristocrat share price is fetching $44.72 this afternoon.

Siteminder Ltd (ASX: SDR)

Analysts at Ord Minnett have commenced coverage on this hotel commerce platform provider’s shares with a buy rating and $7.36 price target. According to the note, the broker is a fan of the company and its evolution towards offering a range of global solutions to the hotel market. All in all, the broker believes Siteminder is well-placed to deliver strong revenue growth over the coming years. The Siteminder share price is trading at $6.08 on Monday afternoon.

The post Leading brokers name 3 ASX shares to buy today 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. owns shares of and has recommended ADAIRS FPO. The Motley Fool Australia owns shares of and has recommended ADAIRS 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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The Insurance Australia Group Ltd (ASX: IAG) share price is being hammered by investors recently. The insurance giant is navigating its way through challenging market conditions caused by the COVID-19 pandemic.

At midday on Monday, IAG shares are swapping hands for $4.40, a drop of 0.57%. In the past month alone, IAG shares have fallen by nearly 11%, weighed down by negative investor sentiment.

What’s happened with IAG shares?

There are a couple of possible catalysts as to why the IAG share price has failed to produce decent gains over the last 12 months.

In its recent trading update, the company revealed a rise in net natural perils claim costs. It blames severe storm and hail activity experienced in October, mainly across South Australia and Victoria.

As such, the insurer is estimating the net natural perils claim costs for FY22 to be around $1,045 million. This is a significant increase from the previous assumption of $765 million.

Following the $280 million setback, IAG has been forced to downgrade its FY22 insurance margin guidance range between 10% to 12%. Previously, the insurance margin level was in the 13.5% to 15.5% range.

In addition, the Australian Securities and Investments Commission (ASIC) has commenced civil penalty proceedings in the Federal Court of Australia.

The allegations relate to IAG’s failure to pass on the full discount to a large number of NRMA home, motor, caravan and boat insurance customers between March 2014 and September 2019.

It’s worth noting that IAG self-reported the issue to ASIC following a review it conducted in 2019. Since then, IAG has embarked on a remediation program for the affected policyholders. More than 80% of the impacted customers have been provided refunds.

What do the brokers think?

A number of brokers have rated the company with comparable price points since IAG released its business update on 2 August.

Leading Australian investment firm Morgans cut its 12-month IAG share price target by 5% to $5.36. Following suit, Macquarie had a similar stance, reducing its rating by 5.3% to $5.40.

However, Citi had a slightly improved outlook compared to the other brokers, slashing just 2.6% to $5.60.

About the IAG share price

Looking at the last 12 months, the IAG share price is down more than 17%, with year to date hovering 6.38% below. It’s worth noting, however, the company’s shares have lost about 50% of their value since July 2019.

In contrast, the S&P/ASX 200 Index (ASX: XJO) has gained around 10% from this time last year and in 2021. The benchmark index also reached a record high of 7,632.8 points in mid-August.

This shows that the ASX 200 has outperformed IAG shares. The ASX 200 historically tracks about 6% higher each year.

Based on valuation metrics, IAG has a market capitalisation of around $10.89 billion, with approximately 2.47 billion shares on issue.

The post With the IAG (ASX:IAG) share price trading around decade-lows, is now the time to buy? appeared first on The Motley Fool Australia.

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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 owns shares of 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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Westpac Banking Corp (ASX: WBC) CEO Peter King has steered the ship of the big four bank through rough waters over the past two years. However, succession plans have become a key point of business according to reports.

A prepared replacement for the top job of Australia’s oldest bank is believed to be well in the works. This follows a significant downfall in the Westpac share price after it published its full-year results at the beginning of the month. Despite a 105% increase to $5,352 million in cash earnings, the Aussie lender missed consensus estimates of $5,420 million.

Shares in Westpac are down ~18% on the ASX since reporting its latest financial results. Though, King’s succession plans are believed to have been in the works well before the recent share price weakness.

Let’s have a look at the latest details.

Who might be in the running for CEO?

Having been at the helm since the swift departure of previous Westpac CEO, Brian Hartzer, King’s replacement is now an important consideration for the company.

According to The Australian, there are whispers that Westpac’s institutional bank chief Anthony Miller is a potential candidate for the role. Miller has a career that spans two decades — with senior positions at Goldman Sachs and Deutsche Bank prior to joining Westpac.

Although, another word on the grapevine suggests that chair John McFarlane might look outside of the bank for a CEO successor. At this stage, there are no hints as to whom might be of interest outside of the company.

Another internal potential contender for the top job is rumoured to be the current chief financial officer, Michael Rowland. The former KPMG Australia partner and Australia and New Zealand Banking Group Ltd (ASX: ANZ) CEO has been responsible for the finances at Westpac for over a year now.

The question of who might step in if Peter King were to step down could be a topic of discussion at Westpac’s 2021 annual general meeting (AGM). Based on the announcement made to the ASX, Westpac will hold this year’s AGM on 15 December at 10 am Sydney time.

Westpac’s run on the ASX

Westpac has been the worst-performing of the big four banks since the beginning of the year. From the first day of 2021, Westpac shares have climbed 7.4% in value. Meanwhile, the other big banks are up by more than 10%.

The pain for Westpac shareholders is a recent occurrence. Prior to the end of October, Westpac was a high flyer on a year-to-date basis, notching up a return of more than 30% since the beginning of the year.

However, pessimism towards the ASX-listed lender has reemerged as growth begins to cool off based on its latest results.

The post Succession: What’s happening with the search for the next Westpac (ASX:WBC) boss? appeared first on The Motley Fool Australia.

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Motley Fool contributor Mitchell Lawler 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 Westpac Banking Corporation. 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 AGL Energy Ltd (ASX: AGL) share price could offer a lot of upside, according to one leading broker.

AGL shares have dropped 9% over the last month and 36% over the past six months.

The broker certainly isn’t expecting all of that drop to be recovered. But with the share price low, the broker is predicting a strong market performance from AGL over the next year.

AGL share price target

A price target is where the broker sees the share price trading in 12 months from the time of the broker note.

The broker that is currently feeling very optimistic about the AGL share price is Ord Minnett. Its price target on AGL is $7.55. That’s a potential increase of around 45% if the broker is right.

Ord Minnett thinks that AGL shares have gone low enough that the retail division alone makes the business attractive, even if the market isn’t excited about Accel Energy as an energy generator with coal and gas energy assets.

The broker also notes the recent deal activity for Meridian Energy Ltd’s (ASX: MEZ) Australian business for a total of $729 million. Shell Energy is going to own the retail business, Powershop Australia.

Ord Minnett thinks that the retail division of AGL could be worth more than $10 per share based on the Meridian Energy deal.

Plan to de-merge

AGL has a plan to create two separately listed energy companies, this could have a growing influence on the AGL share price with a demerger targeted for the middle of 2022.

AGL Australia will be Australia’s largest multi-product retailer. It will be carbon neutral for scope 1 and 2 emissions, with a clear pathway to full carbon neutrality for electricity supply. It is connected to 30% of Australian households with 4.5 million services. AGL Australia plans to invest in flexible and decentralised energy trading, storage and supply services.

Meanwhile, Accel Energy would be Australia’s largest electricity generator. It supplies a fifth of the national electricity market with an expected 33.5TWh of electricity generation. It has decarbonisation target with 16,000 hectares of land for energy hubs. It has a 1GW wind farm portfolio and 1600MW wind development portfolio.

What are the benefits?

The broker thinks there will be more investor interest in the separated businesses, which could be a boost for the AGL share price.

AGL itself says that the demerger will enable each business to set and execute its own strategy at a time of great change in the energy industry.

Accel Energy plans to invest in transition energy assets.

Management believes that a demerger would also allow investors to have greater transparency in valuing each business and choosing the sort of exposure they wish to have.

The energy business said:

The expectations surrounding climate action have increased materially and this is one of the key drivers for AGL’s consideration to pursue a demerger. AGL sees the demerger as a mechanism to allow both leading businesses to focus on their different but important roles within Australia’s energy transition to a low carbon future.

The post Here’s why this top broker is tipping 40% upside for the AGL (ASX:AGL) share price appeared first on The Motley Fool Australia.

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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 Bruce Jackson.

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It has been a very eventful day so far for the S&P/ASX 200 Index (ASX: XJO). At lunch, the benchmark index is down 0.3% but well off its intraday lows at 7,257.2 points.

Here’s what is happening on the ASX 200 today:

Travel share volatility

The travel sector has been very volatile on Monday. The likes of Flight Centre Travel Group Ltd (ASX: FLT) and Webjet Limited (ASX: WEB) sank notably lower in early trade before recovering a good portion of these declines. Concerns over the impact that the Omicron variant could have on travel markets is behind this volatility.

Healthcare shares outperform

One area of the market performing positively today is the healthcare sector. Shares including Healius Ltd (ASX: HLS) and Sonic Healthcare Limited (ASX: SHL) are recording solid gains at the time of writing. These two companies have been generating significant revenue from COVID-19 testing. Investors appear to believe the emergence of the Omicron variant will underpin strong demand for testing for some time to come.

Oil prices rebound

Energy shares including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) are performing relatively positively considering the 13% decline in the WTI crude oil price to US$68.15 on Friday night. This better than expected performance appears to have been driven by a rebound in oil prices this morning. According to Bloomberg, the WTI crude oil price is now back up to US$70.94 a barrel. Santos and Woodside shares are down around 1% at lunch.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Monday has been the Domino’s Pizza Enterprises Ltd (ASX: DMP) share price with a 4% gain. The prospect of lockdowns in Europe could be boosting this pizza chain operator’s shares. The worst performer has been the Unibail-Rodamco-Westfield (ASX: URW) share price with a 6% decline. While lockdowns in Europe could boost Domino’s sales, they would have the opposite effect on this shopping centre operator’s performance.

The post ASX 200 (ASX:XJO) midday update: Omicron hits Flight Centre, Domino’s jumps appeared first on The Motley Fool Australia.

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• ASX energy shares on watch after Omicron sparks oil price crash
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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 recommended Dominos Pizza Enterprises Limited, 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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It has been a stunning day for the Nova Minerals Limited (ASX: NVA) share price according to some investment websites.

However, all may not be what it seems if you dig a little deeper.

What’s going on with the Nova Minerals share price today?

At the time of writing, the Nova Minerals share price is trading at $1.16. This is up 800% from 13 cents at Friday’s close.

While the difference in its share price may technically be accurate, something occurred between Friday’s close and Monday’s open that means the gains are not.

Last week shareholders approved a share consolidation that will see the gold explorer’s share count reduce ten times from 1,802,037,557 shares to approximately 180,203,755 shares.

This meant that the Nova Minerals share price would be $1.30 post-consolidation (13 cents x 10).

As a result, rather than gaining 800% today, Nova Minerals’ shares have actually lost approximately 11% of their value instead.

Why is the company consolidating its shares?

Management provided a number of reasons for why it is consolidating its shares. These includes greater investor interest, improved trading liquidity, and brand image.

It commented: “As a gold developer with a rapidly increasing resource base, Nova is expected to appeal to many new investors over the coming year. The primary motive for the equity consolidation is to expand the eligibility of Nova ordinary shares for institutional investors, stock exchanges, indexes and investment funds, including exchange traded funds (ETF’s). With the increasing prevalence of passive trading rather than active fundamental investing, we intend to ensure that Nova is not prohibited due to minimum share price screening.”

As for improving trading liquidity, it explained: “An increased interest from investors may improve trading liquidity of the ordinary shares.”

Finally, in respect to its brand image, the company said: “Nova is graduating from an explorer to a developer and growing its intrinsic value through its investments. An analysis of Nova’s new peer group of junior developers indicates that this restructuring of ordinary share capital is appropriate for the company at this time with such a large asset base.”

The post Is the Nova Minerals (ASX:NVA) share price really shooting 800% higher today? appeared first on The Motley Fool Australia.

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Shares in biotech giant CSL Limited (ASX: CSL) are in the red this morning, trading at $311 apiece. This comes after the CSL share price nudged past its 52-week highs last week.

After starting last week at $316, CSL shares closed at a high of $318 before reversing course later in the week to finish 1.11% in the red.

This watermark signals an impressive run for the Aussie biotech’s share price over the past month or so, having bounced off a low of $286 in early October.

As such, CSL is now trading around its pre-pandemic levels. Let’s take a look at what’s in store for investors moving forward

What’s next for CSL?

Analysts have been cautious on CSL’s blood plasma collection volumes for a while. This is important as the company derives a large chunk of its revenue from this route.

When competitor Haemonetics Corporation (NYSE: HAE) recently came in with lower than expected plasma collection results, it subsequently lowered its own plasma-grown guidance for the upcoming year. Given CSL is one of a handful of plasma collectors worldwide, experts use competitors’ financials to make estimates.

The team at Morgan Stanley reckon Haemonetics’ guidance downgrade might be a headwind for CSL’s earnings. Not only that, but experts are also worried about the impact that COVID-19 is still having on plasma donors showing up to clinics.

Even still, Morgan Stanley models a 32% increase for CSL’s blood plasma collection volumes this quarter, and this kind of sentiment is also shared by analysts at Macquarie. The latter is bullish about the CSL share price and values it at $338 per share.

Aside from this, CSL’s efforts in producing a multi-dose vial (MDV) version of Audenz were recognised by the US Food and Drug Administration (FDA) recently. For reference, Audenz is already approved as a single-dose therapy.

The FDA granted CSL supplemental approval for the MDV that is produced under CSL’s Seqirus business. The MDV is labelled as a cell-based influenza vaccine designed to help protect individuals aged 6 months or older in the event of an influenza pandemic.

Under the terms of its partnership with the Biomedical Advanced Research and Development Authority (BARDA), Seqirus will be ready to deliver 150 million influenza vaccine doses to the US to combat an influenza pandemic within six months.

CSL also recently announced that it had secured funding to create an incubator and wet space lab for biotech start-ups, with support from the Victorian government.

The company will team up with Melbourne University and The Walter and Eliza Hall Institute of Medical Research (WEHI) to adopt early-stage biotech companies wanting to advance their discoveries.

As CSL puts it, incubators reduce cost barriers to and other roadblocks to entry for start-ups. Incubators offer a ‘one-stop shop’ by minimising expenditure on factors that keep small companies priced out of the market.

These developments sit on the horizon for CSL, which could bode in well for its share price judging by the expert commentary and market’s reaction.

CSL share price snapshot

The CSL share price has had a difficult period these past 12 months, having gained just 3% in that time. It has rallied over 10% this year to date and has gained over 4% in the past month.

Despite this, it has landed in behind the S&P/ASX 200 Index (ASX: XJO)’s return of around 9% in that time.

The post The CSL (ASX:CSL) share price reached a new 52-week high last week. What’s next? appeared first on The Motley Fool Australia.

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The author 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 CSL Ltd. 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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Bitcoin (CRYPTO: BTC) plunged almost 8% on Saturday morning as news of the new Omicron variant of COVID-19 shocked the world.

That sent the cryptocurrency down more than 17% since its all-time high earlier this month.

As it recovers 4% on Monday morning, one expert reckons now is a ripe time to buy.

“Bitcoin is unstoppable, and I fully expect to see prices double over the next 12 months,” said deVere Group chief executive Nigel Green.

“This dip in cryptocurrencies – which are, of course, the inevitable future of money – will be used by savvy investors as a major buying opportunity, topping up their portfolios with the current lower entry points.”

Bitcoin is so mainstream now

The fact that Bitcoin sank so much in line with share markets on the first news of Omicron tells Green that the cryptocurrency has truly arrived.

“The discovery of a new COVID variant has rattled global stock markets as it brings in a new wave of uncertainty, which they hate,” he said.

“The crypto markets have mirrored the reaction of other financial markets. This underscores how mainstream digital assets have now become, as an increasing number of institutional investors have piled into Bitcoin this year.”

But Bitcoin’s value plummeting because of a new health crisis doesn’t make sense, as traditionally, it has been seen as a store of value – like gold.

So a revival in fortunes is inevitable.

“I think this [is] a knee-jerk reaction from the crypto market. It will move on from this relatively quickly as it did with the Delta variant in the summer,” said Green.

“Why? Partly, because now we have more of a roadmap of how to deal with variants. But importantly because amongst retail investors it is increasingly regarded as a safe haven asset, similar to gold.”

Inflation fears will return, making Bitcoin more valuable

As he said with share markets, Green reckons the cryptocurrency investors will soon move on from the Omicron threat and return to worrying about other issues.

“Investors will once again focus on heightening global inflation fears caused by lingering supply-side issues,” he said.

“As such, amid some peaks and troughs along the way as markets never move in a straight line with traders taking profit, we can expect to see the price of Bitcoin and other major cryptocurrencies continue their upwards trajectory.”

Bitcoin has historically done well in times of inflation anxiety because of its finite supply. The currency has been programmed to have no more than 21 million coins in circulation.

And this would continue to drive demand from large investors, who for so long ignored Bitcoin as a legitimate asset.

“This ‘inflation shield’ will continue to bring to the crypto market growing investment from major institutional investors, bringing with them capital, expertise and reputational pull – and further driving up prices.”

The post ‘Unstoppable’: Bitcoin will double in next 12 months, says expert appeared first on The Motley Fool Australia.

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Motley Fool contributor Tony Yoo owns shares of Bitcoin. 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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