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The GQG Partners Inc (ASX: GQG) share price rocketed on Thursday following the company’s funds under management (FUM) update.

At the final bell, the fund manager’s shares finished the day 9.68% higher at $1.53.

In contrast, the S&P/ASX 200 Financials Index (ASX: XFJ) closed down 0.57%. The S&P/ASX 200 Index (ASX: XJO) also had another disappointing day, closing at 7,442.8, down 0.63%.

FUM update

Investors rallied up the GQG share price following the company’s latest FUM report.

GQG reported that total FUM experienced US$3.4 billion in net inflows over the quarter. This is despite a challenging macro environment in which the business continued to see positive net flows through its three major channels.

As such, the international equity division rose 2.5% to US$32.6 billion. This was followed by global equity which increased by 6.2% to US$29.3 billion.

Furthermore, the emerging markets equity business improved by 1.2% to US$24.9 billion, with United States equity up 5.2% to US$6.1 billion.

Across the board, total FUM stood at $92.2 billion at the end of the March quarter.

The company said:

We continue to see business momentum across multiple geographies and channels as our Q1 flows represent positive net flows from all three of our major channels and positive net flows from multiple geographies, notably in the Australian and Canadian retail channels.

About the GQG share price

After reaching a record high of $2.13 late last year, the GQG share price is down 30% over the past year.

It has also fallen 13% this year to date. However, it is up 16% over the past month and 9% over the past week.

GQG commands a market capitalisation of roughly $4.51 billion and has approximately 2.95 billion shares outstanding.

The post This ASX financial share defied its sector sell-off to climb 9%. Here’s why appeared first on The Motley Fool Australia.

More reading

• Why Ardent Leisure, GQG, Magellan, and Melbana shares are charging higher
• Brokers: 2 ASX dividend shares expected to pay juicy yields
• 2 ASX dividend shares with yields above 5%
• Here are the top 10 ASX shares today
• Why Aurelia Metals, Brambles, GQG, and Nickel Mines shares are falling

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

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Endeavour Group Ltd (ASX: EDV) shares have hit not one, not two, not even three… but four all-time high prices this week.

The owner of Dan Murphy’s and BWS liquor stores has had a cracking time of it lately. Endeavour shares have spiked 11% over the past 30 days and closed the session up again today by 1.06% to $7.66.

Endeavour shares hit new highs

The Endeavour share price closed at $7.42 on Monday — creating the first all-time high of the week. On Tuesday it finished at $7.49, then $7.58 on Wednesday, and it’s yet another high-flying finish today.

This is despite no price-sensitive news out of the retail drinks and hotel operator since 21 February. That was when Endeavour reported its FY22 half-year earnings, which lifted its share price 11% in one day.

The company reported a 15.6% increase in group net profit after tax (NPAT) to $311 million. It also announced a fully franked interim dividend of 12.5 cents per share.

What else is happening at Endeavour lately?

Endeavour appears well-positioned to benefit from the COVID-19 reopening, as people feel more comfortable venturing out for meals and entertainment at hotels and clubs.

Endeavour runs 342 venues and draws income not just from drinks and food sales but gaming, too. This segment of the business is “returning to normality” with 12,400 poker machines operating across its network.

The shift to more online shopping also bodes well for Endeavour. The company has amassed an enormous regular customer base through its Dan Murphy’s loyalty program.

According to the Financial Review, more than 30% of Australian adults — that’s 6.2 million people — are members of the program.

According to the report: “For a business with only 251 bricks and mortar outlets, the “My Dan’s” loyalty program has impressive reach, considering the much older Flybuys program, which operates across Coles supermarkets and a host of other retail brands, has about 8 million users.”

Analysts believe the ASX businesses that can best leverage their customer base in the digital world will have a big advantage moving forward.

What do brokers say about Endeavour shares?

The article quoted Goldman Sachs analyst Lisa Deng. She has a buy rating on Endeavour and a share price target of $8. She also sees the My Dan’s loyalty program as a huge benefit to the company.

Deng said: “Given it is a pure-play alcohol retailer, we find it extraordinary that it has the breadth and depth of consumer assets that can rival a top staples grocery retailer.”

Deng said she expects the company to continue gaining market share in its retail division.

Given the complexity of the portfolio, with high number of stock-keeping units and specialist skills required for procurement, it will be difficult for incoming competitors to build scaled competition quickly.

The post Own Endeavour shares? Here are 4 things you probably don’t know appeared first on The Motley Fool Australia.

More reading

• 3 ASX 200 shares smashing 52-week highs on Thursday
• A toast! The Endeavour share price just hit an all-time high
• Federal budget: Goldman Sachs names 4 ASX shares to buy
• Do Endeavour (ASX:EDV) shares pay dividends?
• Top broker puts conviction buy rating on Endeavour (ASX:EDV) shares

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

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The Telstra Corporation Ltd (ASX: TLS) share price has climbed almost 4% in a month, but could it go even higher?

The Telstra share price has ascended 3.66% since market close on 7 March.

In today’s trade, the company’s shares jumped 0.76% to finish the day at $3.96. In contrast, the S&P/ASX 200 Communication Services Index (ASX: XTJ) dropped 0.45% today.

Is the telco a buy?

The Telstra share price is a buy, according to the team at Morgans. The broker placed an add rating on the telco’s shares and a $4.55 price target. This is 14.9% more than the share price at today’s close.

Successful implementation of the company’s transformation T22 strategy and T25 strategy are underpinning this positive outlook, my Foolish colleague James reported.

Morgans believes Telstra shares are undervalued on a “sum of the parts basis”. The analyst added: “Sector dynamics look positive and value realisation is possible.”

Morgans is predicting Telstra to pay a fully franked dividend of 16 cents per share in FY 2022 and FY 2023.

Meanwhile, Goldman placed a neutral rating on the telco recently with a price target of $4.30, my Foolish colleague Bernd reported. Goldman noted a network sharing agreement Telstra signed with TPG Telecom Ltd (ASX: TPG) in late February. Under the agreement, Telstra will provide TPG with access to 3,700 of its mobile network assets Analysts said:

TPG is paying for access to a significant portion of TLS regional coverage.  This is driving incremental wholesale earnings for TLS, improving the quality/speed of its metro and regional networks.

Another factor that could impact the Telstra share price in April is the transition to a new chief executive officer. Telstra recently appointed Vicki Brady to take over from outgoing CEO Andy Penn on 1 September. Brady will work with Penn over the next few months to prepare for the top gig.

Brady is not new to Telstra. She joined the company in 2016 and has served as the chief financial officer since July 2019. Penn also joined Telstra as a chief financial officer in 2012 and took over the top job three years later.

Telstra’s T25 strategy was announced in September 2021. At the time, Penn told investors: “If T22 was a strategy of necessity, T25 is a strategy for growth.”

Telstra share price snapshot

The Telstra share price has surged nearly 17% over the past 12 months, but it has dropped 5% year to date.

For perspective, the benchmark S&P/ASX 200 Index has returned 7.4% over the past year.

Telstra has a market capitalisation of more than $46 billion based on its closing share price today.

The post Could April be a good month for the Telstra share price? appeared first on The Motley Fool Australia.

More reading

• Here are the 3 most heavily traded ASX 200 shares on Thursday
• 2 ASX dividend shares analysts have named as buys
• The Telstra dividend is being paid today. Here’s what you need to know
• 5 things to watch on the ASX 200 on Friday
• What helped boost the Telstra share price on Thursday?

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 Telstra Corporation Limited. The Motley Fool Australia has recommended TPG Telecom 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 ASX welcomed a new battery minerals face on Thursday, with shares in International Graphite Limited (ASX: IG6) floating on the market this afternoon.

After offering shares in the company for 20 cents apiece under its initial public offering (IPO), International Graphite finished its first day on the ASX trading at 36 cents.

Not to mention, at its intraday high of 42 cents, the company’s share price was 110% higher than its IPO offer price.

So, what exactly does the company do in the battery minerals space? Let’s take a look.

ASX battery minerals share rockets on float

The International Graphite share price launched 110% during its ASX float this afternoon.

It hit the board at 12.30pm after raising $10 million by issuing 50 million shares as part of its IPO.

The company is aiming to supply graphite to international markets and produce battery anode material to meet growing demand for battery materials.

Fun fact: the company’s ticker – IG6 – represents its initials and the atomic number of carbon.

International Graphite is building a production facility in Western Australia. There, it plans to manufacture graphite products to be sold to industrial component manufacturers.

It’s also developing a pilot plant to push production and sales of battery anode materials for lithium-ion batteries.

Additionally, the company has acquired the Springdale Graphite Project from Comet Resources Limited (ASX: CRL).

Comet Resources received 40 million shares in the ASX battery minerals newbie as payment for the project.

The Springdale Graphite Project is a shallow graphite deposit with metallurgical characteristics for battery anode material and prospectivity for more resources.

Right now, the Springdale Graphite Project is at the exploration and development phase. The company expects it will eventually provide most of the feedstock for its processing activities, located 450km away.

After listing on the ASX, the company has around 179.4 million shares, fully diluted.

That saw it with an expected fully diluted market capitalisation of around $35.9 million at its offer price.

However, at its first close on the ASX, the battery minerals company’s valuation is around $64.5 million, fully diluted.

The post Newest battery minerals share booms 80% on ASX debut appeared first on The Motley Fool Australia.

More reading

• Looking for dividend shares outside mining and banking? Read this
• What’s the outlook for the Cochlear share price in April?
• Why did the Qantas share price have such a tough time of it today?
• This ASX tourism share defied the sell-off today to soar 6%. Here’s why
• Why are ASX 200 tech shares having such a dire day?

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 Bruce Jackson.

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If there’s one thing income investors love, it’s watching the dollars trickle in and stack up as their dividend shares deliver. Simply put, it really gives the sense that you are making money while you are sleeping.

However, as investors, we reserve the right to be picky with our investments. Not everyone is industry agnostic when it comes to the share market. This presents a challenging case if you are salivating for some dividend delights, but aren’t so keen on the mining and banking sectors.

Here’s a look at where a couple of investing experts turn to outside of the ASX dividend shares staples.

Looking beyond the regular dividend shares of the ASX

Whether it be for ethical reasons, or maybe mining and banking shares just aren’t your jam, looking for shares with a reasonable yield outside of these sectors can be a challenge.

For example, below is a snapshot of the highest yielding ASX shares in the All Ordinaries Index (ASX: XAO) with dividend per share growth of more than 5% in the last year… do you notice anything?

ASX-listed company	Dividend yield	Sector
Base Resources Limited (ASX: BSE)	20.9%	Mining
Fortescue Metals Group Limited (ASX: FMG)	13.7%	Mining
BSP Financial Group Ltd (ASX: BFL)	13.0%	Financials
Zimplats Holdings Ltd (ASX: ZIM)	10.7%	Mining
Grange Resources Limited (ASX: GRR)	9.88%	Mining
Jupiter Mines Ltd (ASX: JMS)	9.26%	Mining
Euroz Hartleys Group Ltd (ASX: EZL)	9.20%	Financials
New Hope Corporation Limited (ASX: NHC)	9.16%	Energy
BHP Group Ltd (ASX: BHP)	9.03%	Mining
VGI Partners Ltd (ASX: VGI)	8.81%	Financials

As you might have recognised, mining and financials dominate the top-yielding dividend shares. So, what are some other options for investors? Dr Don Hamson from Plato Investment Management has his eyes on energy and consumer discretionary.

Shared in an interview with Livewire, Hamson highlighted energy shares as a beneficiary of supply shortages. In short, the higher realised prices for energy commodities should help boost dividends for these companies. While not a pick from Hamson himself, energy outfit New Hope is the only ASX dividend share outside of the mining and financials sector that appeared in our top-yielding names.

Is tech even an option for dividends?

While the tech sector has been lumped into a negative boat among investors recently, Janus Henderson portfolio manager Jane Shoemake thinks that could be a mistake.

Although we might have to look further abroad, Shoemake believes there are opportunities for bagging a decent dividend share in the tech sector. Specifically, the portfolio manager named Microsoft Corporation (NASDAQ: MSFT) as a dividend share that might be overlooked by investors. Supplying justification, Shoemake said:

[…] we believe it is important not to consider just the yield, but also the potential for a company to sustain and grow its dividend. Some lower-yielding stocks, such as those in the technology sector, for example, offer very attractive dividend growth characteristics.

With a yield of 0.8%, it doesn’t exactly churn out the same kind of yields as ASX mining companies. However, the expert noted that the company has been consistently growing its dividend by around 10% per annum for several years.

The post Looking for dividend shares outside mining and banking? Read this appeared first on The Motley Fool Australia.

More reading

• The best type of ASX shares to buy right now: expert
• 3 differences between you and billionaires, and 1 thing you have in common
• Why investing in shares still offers the ‘best return potential’ in 2022: expert

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. owns and has recommended Microsoft. 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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After a recent recovery, the Cochlear Limited (ASX: COH) share price has been a mild pleaser for investors. Although Cochlear shares ended the day down by 0.16% at $224.79, the hearing technology company is now up around 1% in 2022 so far, as well as up 3.4% over the past 12 months.

Over the past month, this ASX 200 healthcare share has gained a healthy 4.5%. Saying that, the company is still more than 12% below the all-time high of $257.76 that we saw back in August last year.

Cochlear’s most recent earnings report seems to have been well received by investors too. Back in February, the company announced a 10% increase in sales revenue and a 26% rise in underlying profits to $158 million. Pleasingly for income investors, Cochlear also announced a 35% increase to its interim dividend to $1.55 per share. This saw investors give the Cochlear share price a boost at the time.

But now that we’ve passed the first quarter of 2022, what might be next for Cochlear? What does April hold for this famous brand in the medical space?

Is the Cochlear share price a buy in April?

Well, one ASX broker who is bullish on the Cochlear share price is Morgans. As my Fool colleague James covered last month, Morgans recently upgraded its rating on Cochlear to an ‘add’, with a 12-month share price target of $233.20. If that turns out to be accurate, it would mean Cochlear has a 3.7% or so upside left in the tank over the next year.

Here’s some of what Morgans said on its buy recommendation:

“Cochlear maintains a dominant position in the implantable hearing solutions segment. While we continue to believe a full recovery from Covid-based disruptions still has time to play out, improving demand and strong pipeline, coupled with management’s increasing confidence, is all suggestive of an improving earnings profile.”

So that’s pretty emphatic from one of the ASX’s top brokers.

But we’ll have to wait and see if its bullishness is justified over the next 12 months.

In the meantime, the current Cochlear share price gives this ASX 200 healthcare company a market capitalisation of $14.81 billion, with a dividend yield of 0.92%.

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

More reading

• Here are the 3 most heavily traded ASX 200 shares on Thursday
• ASX 200 midday update: Magellan jumps, tech shares tumble
• 3 more of the ‘best’ ASX 200 shares to buy this month: Morgans
• 2 ASX tech shares that are cheap enough to buy now
• 5 things to watch on the ASX 200 on Thursday

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. owns and has recommended Cochlear Ltd. The Motley Fool Australia has recommended Cochlear 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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Shares in Qantas Airways Limited (ASX: QAN) fell along with other ASX travel companies today. At the close of trading, the Qantas share price was $5, down 1.96%.

Also trading lower today were fellow ASX 200 travel shares Flight Centre Travel Group Ltd (ASX: FLT), down 2.74%, and Webjet Limited (ASX: WEB), down 2.86%.

ASX travel shares follow US lead

Overnight, the share prices of US airlines also fell amid concerns the US Federal Reserve might raise interest rates in higher increments than usual to curb inflation after the Ukraine-Russia conflict eases.

Some US carriers are carrying hefty net debt and every rate rise means more expensive loan repayments. This can impact cash flow and result in less money flowing through to profits for shareholders.

Also possibly weighing on the Qantas share price is the rising cost of oil amid the Russia-Ukraine conflict. This is a significant headwind for airlines, as jet fuel is one of their biggest costs of doing business. The price of Crude oil is up 1.5% to $97.66 and the price of Brent is up 1.63% to $102.73, according to tradingeconomics.com.

Qantas customers say they’ve been charged twice

Compounding the company’s woes today is reports that some Qantas passengers have been charged multiple times for the same flight.

According to a report on abc.net.au, customers have taken to Twitter to express their frustration over the charges. Many claim they’ve had to spend hours waiting on hold to speak to someone at the call centre.

Ruby Halloumi posted: “I was charged twice, and it took 15 business days to get my funds back, after approximately 10 hours on hold with Qantas over a week.” 

In a media statement released today, Qantas acknowledged that “recent call wait times that our customers have been experiencing are not acceptable… We sincerely apologise”.

In its statement, Qantas said:

Our call volume has increased from an average of 7,500 calls a day to 14,000 calls a day, with calls on average taking 50 per cent longer to resolve than pre-COVID given the complexity of some itineraries across more than one airline where routes are re-opening and flights are re-starting at different times.

Qantas share price recap

The Qantas share price is up by more than 10% over the past 30 days. However, it is still down almost 8% over the past year and 3% year to date.

For comparison, the S&P/ASX 200 Index (ASX: XJO) has gained more than 6% over the past 12 months but is down around 2% this year to date.

The post Why did the Qantas share price have such a tough time of it today? appeared first on The Motley Fool Australia.

More reading

• ASX travel shares have been flying higher over the past month. Here’s why
• What happened to the Qantas share price today?
• What is the current dividend yield for Qantas shares?
• ‘Key to our future’: What’s going on with the Qantas share price today?
• Why is the Qantas share price lifting today?

Motley Fool contributor Bronwyn Allen owns Flight Centre Travel Group Limited, Qantas Airways Limited, and Webjet Ltd. 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 Ardent Leisure Group Ltd (ASX: ALG) share price surged today, despite many ASX tourism shares descending.

The company’s shares soared 8.49% in earlier trade before retreating. At the closing bell, the Ardent Leisure share price finished up 6.18% at $1.38.

Ardent’s shares took off on a day many ASX tourism shares were in the red. The Corporate Travel Management Ltd (ASX: CTD) share price slid 2.54%, while Helloworld Travel Ltd (ASX: HLO) descended 2.4%.

Meanwhile, Qantas Airways Limited (ASX: QAN) dropped 1.96%, Webjet Limited (ASX: WEB) fell 2.86% and Flight Centre Travel Group Ltd (ASX: FLT) slipped 2.74%.

Let’s take a look at why this ASX tourism share performed so well today.

What’s happening with this ASX tourism share?

Ardent Leisure has agreed to sell 100% of its US Main Event Entertainment business for US$835 million.

The company, along with RedBird Capital partners, has entered a binding agreement and merger plan with Dave & Buster’s Entertainment Inc (NASDAQ: PLAY). New York-based private investment firm Redbird acquired a 24.2% interest in Main Event Entertainment in June 2020.

If the transaction goes ahead, Ardent Leisure will receive about US$487 million in cash. Ardent plans to now focus entirely on its Australian theme parks business. Ardent owns the Dreamworld and WhiteWater World theme parks on the Gold Coast, along with the SkyPoint attraction.

Proceeds from the sale will be used to pay its debt to the Queensland Treasury Corporation and deferred settlement to the Australian Taxation Office.

Ardent will also use the funds to invest in the theme parks business. The company expects to return $430 million, or 90 cents per share, to shareholders if the deal goes ahead.

Shareholders will vote on this transaction at an extraordinary general meeting later this year.

The Ardent board will recommend shareholders vote in favour of the sell-off. This is subject to conditions, including independent expert review and no superior proposal being received.

Commenting on the news that boosted this ASX tourism share today, Ardent Leisure chairman Dr Gary Weiss said:

Having regard to the valuation reflected by the transaction and its terms and conditions, the Board believes that this transaction with Dave & Buster’s is in the best interests of Ardent Leisure shareholders.

Furthermore, if the transaction completes, Ardent Leisure shareholders will receive a significant distribution of cash and retain continued ownership in a leading theme parks operator with a strong balance sheet and highly experienced management team that is poised to benefit from the significant investments made in the business and the reopening of Australia’s economy and its international borders.

Ardent Leisure share price snapshot

The Ardent Leisure share price has soared 50% in the past year, while it is up 2% this year to date. In contrast, the S&P/ASX 200 Index (ASX: XJO) has returned nearly 8% in the past year.

Ardent has a market capitalisation of about $662 billion based on its current share price.

The post This ASX tourism share defied the sell-off today to soar 6%. Here’s why appeared first on The Motley Fool Australia.

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• Top fund manager reveals 2 smart ASX shares to buy
• These 2 compelling ASX shares are a buy: fund manager

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The S&P/ASX 200 Index (ASX: XJO) is having a fairly disappointing day of trading thus far this Thursday. At the time of writing, the ASX 200 is down by 0.66% at just under 7,450 points. Unfortunately for ASX tech shares, this sector is leading the ASX 200 losses today.

While the ASX 200 is ‘only’ down by 0.64%, the S&P/ASX All Technology Index (ASX: XTX) has now lost more than 3% of its value. 

We can see this in action with some of the ASX 200’s most prominent tech shares.

Take Block Inc (ASX: SQ2), the new owner of Afterpay. Block shares are currently enduring a nasty 4.3% drop at $170.59 a share.

Altium Limited (ASX: ALU) shares aren’t quite as deep in the dog house but are still down 3.13% right now at $33.60 a share. 

Appen Ltd (ASX: APX) is faring slightly better again. This dataset company has lost 1.68% at $6.72 a share as it currently stands. It’s a similar story with Xero Limited (ASX: XRO), which is down by 2.56% at $102.19.

But WiseTech Global Ltd (ASX: WTC) is really copping some ire. WiseTech share price has slumped 6.01% so far today and is now at $49.54 a share.

So why has the ASX 200 tech share sector taken such a battering today?

Why are investors selling off ASX 200 tech shares?

Well, it’s possible these moves have been spurred by the performance of the US tech sector overnight. Last night saw the NASDAQ-100 (INDEXNASDAQ: NDX) lose a hefty 2.17%. The tech-heavy Nasdaq is home to most of the prominent US tech shares, such as Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL) and Netflix Inc (NASDAQ: NFLX).

This in turn seems to have been sparked by hawkish comments from the US Federal Reserve, which seem to indicate that the Fed may be thinking about ramping up interest rate hikes.

Tech shares are particularly susceptible to higher interest rates seeing many of them trade on elevated valuations and higher growth expectations compared to other sectors on the market.

So that could be why we are seeing so many ASX tech shares getting steamrollered today.

The post Why are ASX 200 tech shares having such a dire day? appeared first on The Motley Fool Australia.

More reading

• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Why Andromeda Metals, ARB, BCI Minerals, and WiseTech shares are tumbling lower
• ASX 200 midday update: Magellan jumps, tech shares tumble
• March was a lousy month for ASX BNPL shares. Here’s why
• Broker says the Altium share price weakness is a buying opportunity

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen owns Alphabet (A shares). The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Alphabet (A shares), Altium, Appen Ltd, Block, Inc., Netflix, and WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Alphabet (C shares). The Motley Fool Australia owns and has recommended Block, Inc. and WiseTech Global. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), and Netflix. 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 down 4.4% over the past 24 hours, having earlier been down more than 6%.

One Bitcoin is currently worth US$43,356 (AU$58,377).

The past two days of retreat have mirrored losses among risk assets like high growth tech shares. This selloff has the S&P/ASX All Technology Index (ASX: XTX) leading the way lower, down 3% in intraday trading.

With the overnight losses, the world’s original crypto is now down 8% since this time last week and down 9% year-to-date.

Yet, while still in the red for the calendar year, the Bitcoin price has marched 23% higher since 24 January, when it traded for US$33,184, according to data from CoinMarketCap.

That’s the recent price action in a nutshell.

But what can crypto investors expect from the Bitcoin price over the coming months?

What’s ahead for the Bitcoin price in 2022?

Ian Lowe is the CEO of crypto wealth platform Dacxi.

Asked what could impact the Bitcoin price over the coming months, Lowe told The Motley Fool:

Institutional adoption will continue to push prices higher. Bullish undertones rippled through the market last Tuesday as the co-founder of Terra (CRYPTO: LUNA), Do Kwon, announced that Terra is commencing the accumulation of US$10 billion worth of Bitcoin as a reserve asset for its stablecoin TerraUSD (CRYPTO: UST).

Lowe added:

The institutionalisation of Bitcoin was further highlighted last week, when Goldman Sachs conducted its first Bitcoin OTC transaction, and reports of Ray Dalio’s giant hedge fund, Bridgewater, backing a crypto fund were released.

A US-listed Bitcoin ETF and looming regulations

Josh Gilbert, crypto analyst at multi-asset investment platform eToro, pointed to the potential launch of a Bitcoin exchange traded fund (ETF) in the United States’ markets as a strong potential tailwind for the Bitcoin price in 2022.

“A US spot bitcoin ETF is still on the radar for next quarter. Although there is no confirmed launch date, interest-only continues to soar,” he told us.

“As some of the world’s largest financial institutions, such as BlackRock, are now beginning to make crypto available for their clients, a spot Bitcoin ETF is expected to make investing in Bitcoin much more straightforward,” he added.

But Gilbert cautioned of potential headwinds over the coming months that could drag on the Bitcoin price.

“I’d be watching for further conversations around regulation, particularly outside of the US,” he said.

According to Gilbert:

US President Joe Biden recently issued his executive order on Ensuring Responsible Development of Digital Assets. Although it’s unlikely we will see the full transition pan out in Q2, any negative discussions in Congress could see the Bitcoin price drop.

Rising utility and stronger hands a tailwind for the Bitcoin price

Daniel Sekers is the managing director of crypto trading platform YourPortfolio.

Commenting on what could send the Bitcoin price higher, Sekers told The Motley Fool, “We are seeing the utility of Bitcoin starting to be used as an underlying security to altcoins. Last week saw the LUNA Foundation Guard buy up US$3 billion of Bitcoin to back their dollar-backed stablecoin.”

Sekers pointed to the havoc caused by Russia’s invasion of Ukraine as also likely to support the Bitcoin price over the coming months:

We have again seen a marked increase in Bitcoin transactions in Europe, we assume fuelled by the conflict in Ukraine. Some of this flow can be attributed to aid flowing into Ukraine, but it would also be reasonable to assume that some of it is being used to avoid Russian sanctions. I would expect the use of cryptocurrencies in the region will continue to fuel price increases in the asset.

He also noted that more Bitcoin looks to be held by what equity investors call ‘strong hands’. Namely investors unlikely to sell at the first sign of weakness.

“In the last 30 days, an analysis of the blockchain via forensic analysis platform Chainalysis shows 0.9% increase in Bitcoin being held by what is considered to be ‘illiquid pools’ which may have an inflationary impact on the Bitcoin price,” he said.

As for what could drag Bitcoin lower over the coming months, Sekers said, “There is nothing like a tweet from Elon Musk to move the Bitcoin price, but we are never really certain of his motives. Tesla holds almost US$2 billion in Bitcoin but that didn’t stop Elon commenting on the energy consumption of the coin putting downward pressure on the price.”

Then there’s the uncertainty surrounding upcoming regulations, which can potentially depress Bitcoin’s performance in the shorter-term. “In the long run this will likely support the Bitcoin price with mass market adoption, but in the short term, the uncertainty of regulation may create a state of flux,” he said.

But the biggest risk to the Bitcoin price, according to Sekers, is the cost to produce and transact the token, which could see a jump in supply.

“With energy prices heavily inflated, crypto-miners that aren’t relying on more stable renewable energy sources will have inflated mining costs,” he said.

Sekers continued:

We see miners react to these fluctuations like any other commodity producer, in that they will decrease their mining operations and increase outflow of reserves. Where it differs with crypto is that miners will release more crypto into the market creating more liquidity, hence increasing supply.

For the miners, especially with an elevated price, this allows them to offset the increased price of production. In the last week, we have seen a marked increase in miners moving Bitcoin to exchanges, as such increasing supply.

The post Bitcoin price tumbles overnight. What can crypto investors expect next in 2022? appeared first on The Motley Fool Australia.

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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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