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  • Is the Rio Tinto share price a buy in October?

    busy trader on the phone in front of board depicting asx share price risers and fallersbusy trader on the phone in front of board depicting asx share price risers and fallers

    Amid a busy year on the charts, the Rio Tinto Limited (ASX: RIO) share price has continued in a sawtooth-like fashion and hit 52-week lows in September.

    In what’s been an otherwise strong year for resource stocks in mining and energy, the diversified mining giant has failed to impress in 2022.

    Instead, shares have drifted lower and reached year lows of $87.78 on 26 September. Naturally, the question then turns to Rio’s outlook for October.

    Is Rio Tinto a buy?

    Those hoping to secure Rio shares at these compressed prices might think so. Pending one’s view on the industry outlook, there are numerous tailwinds to mention from macroeconomic drivers.

    However, analysts covering the share aren’t as conclusive.

    Rio is currently rated a buy from 10 out of 18 brokers, with the remaining coverage saying it’s a hold, according to Refinitiv Eikon data.

    The consensus price target from this list is $109.77, implying around 12% of upside potential from the current price of $97.54.

    The Rio share price also trades on a forward price to earnings (P/E) ratio of 9.3 times, ahead of the GICS Metals & Mining Industry’s median of 6.6 times.

    This is coupled with a price-to-book (P/B) ratio of 1.92 times. Again, this is a step in front of the peer median’s 1.46 times.

    It’s not all capital gains that make up the Rio Tinto investment debate, however. Dividends are a large part of the total return investors can expect in this name.

    According to Refinitiv, analysts estimate Rio to deliver a 7.6% dividend yield in the next 12 months. This is again ahead of peers but behind its trailing 12 month’s 8.8% yield.

    The company also produced a return on equity (ROE) of 41.6% in 2021. This will be an interesting number to compare against in the mining giant’s upcoming FY22 results in October.

    Is the premium on Rio Tinto shares worth it?

    All-in-all, it looks as if investors are asked to pay a small premium to buy Rio shares versus comparable peers in the industry.

    The question is whether the premium is justified or not.

    While many of Rio’s commodity markets have performed exceptionally well in 2022, its hero product, iron ore, has mirrored the Rio Tinto share price this year.

    As seen below, the two have tracked each other with striking similarity; drifting to continuous new lows in unison.

    With iron ore trading near its 52-week lows as well, pressure remains from the bottom on the Rio Tinto share price. So far, it’s down more than 2% this year to date.

    TradingView Chart

    The post Is the Rio Tinto share price a buy in October? appeared first on The Motley Fool Australia.

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

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  • 5 things to watch on the ASX 200 on Friday

    A male sharemarket analyst sits at his desk looking intently at his laptop with two other monitors next to him showing stock price movements

    A male sharemarket analyst sits at his desk looking intently at his laptop with two other monitors next to him showing stock price movements

    On Thursday, the S&P/ASX 200 Index (ASX: XJO) managed to keep its winning streak alive with the smallest of gains. The benchmark index rose a modest 1.8 points to 6,817.5 points.

    Will the market be able to build on this on Friday and end the week on a high? Here are five things to watch:

    ASX 200 expected to fall

    The Australian share market looks set to end the week in the red after Wall Street tumbled overnight. According to the latest SPI futures, the ASX 200 is expected to open 55 points or 0.8% lower this morning. In late trade in the United States, the Dow Jones is down 0.9%, the S&P 500 has dropped 0.7%, and the Nasdaq has fallen 0.35%.

    Oil prices rise again

    Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a decent finish to the week after oil prices pushed higher again overnight. According to Bloomberg, the WTI crude oil price is up 1% to US$88.61 a barrel and the Brent crude oil price is up 1.3% to US$94.57 a barrel. OPEC’s production cuts have boosted prices to three-week highs.

    Dividends being paid

    Today is payday for a number of dividend-paying ASX 200 shares. This includes insurance broker AUB Group Ltd (ASX: AUB), waste management company Cleanaway Waste Management Ltd (ASX: CWY), property company Home Consortium Ltd (ASX: HMC), telco Spark New Zealand Ltd (ASX: SPK), and logistic solutions technology company WiseTech Global Ltd (ASX: WTC).

    Gold price edges higher

    Gold miners including Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) will be on watch after the gold price edged higher overnight. According to CNBC, the spot gold price is up 0.05% to US$1,721.70 an ounce. The precious metal appears to be running out of steam after some strong gains recently.

    TechnologyOne rated neutral

    The team at Goldman Sachs has retained its neutral rating on TechnologyOne Ltd (ASX: TNE) shares with a $13.15 price target. This follows the company’s Showcase event this week, which highlighted its cloud-native future and new fee model. Goldman commented: “The company did not elaborate on the pricing of its SaaS+ model, except to say that it will be greater than the current typical annual SaaS fee and will index with CPI.”

    The post 5 things to watch on the ASX 200 on Friday appeared first on The Motley Fool Australia.

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    Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool Australia has recommended Austbrokers Holdings Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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  • Brokers name 2 ASX growth shares to buy

    Two brokers pointing and analysing a share price.

    Two brokers pointing and analysing a share price.

    Looking for growth shares to buy in October? Then you may want to check out the two listed below that brokers rate highly.

    Here’s why these ASX growth shares have been named as buys:

    Jumbo Interactive Ltd (ASX: JIN)

    This online lottery ticket seller could be an ASX growth share to buy this month.

    That’s the view of analysts at Morgans, which were impressed with the company’s performance in FY 2022 and remain confident on its outlook.

    This is thanks to its defensive qualities and the Powered by Jumbo software-as-a-service (SaaS) platform’s international opportunity. It commented:

    We believe JIN offers excellent strategic growth opportunities, both in Australia and overseas, supported by a steadily expanding domestic market for digital lottery retailing. The business is cash generative and has a low requirement for ongoing capex. Lottery sales are resilient to economic cyclicality. They do not represent a large proportion of the personal budgets, hovering around 0.5% of household discretionary income in Australia. Although near-term sales are affected by the frequency of large jackpots, over time growth is steady.

    The broker currently has an add rating and $17.50 price target on the company’s shares.

    Temple & Webster Group Ltd (ASX: TPW)

    Another ASX growth share that brokers say investors should buy in October is Temple & Webster. It is Australia’s leading pure-play online retailer of furniture and homewares.

    Analysts at Goldman Sachs are tipping the company for strong long term growth. This is thanks to its leadership position in a retail category that is still only in the early stages of shifting online. It commented:

    Our Buy thesis is predicated on the following key drivers: (1) we believe TPW is well positioned in the upcoming cycle to continue to grow market share, despite a weaker macro environment; (2) in our view TPW is best placed to be a winner in a category that favours scale players, requires a specialised approach to e-commerce, and has higher barriers to entry vs. other retail categories; and (3) greater focus on costs is a sensible strategy to balance near-term profitability with growth.

    Goldman has a buy rating and $7.55 price target on the company’s shares.

    The post Brokers name 2 ASX growth shares to buy appeared first on The Motley Fool Australia.

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    Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Jumbo Interactive Limited and Temple & Webster Group Ltd. The Motley Fool Australia has recommended Jumbo Interactive Limited and Temple & Webster Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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  • Experts name 2 ASX 200 shares to buy before the market takes off

    A man sits in deep thought with a pen held to his lips as he ponders his computer screen with a laptop open next to him on his desk in a home office environment.

    A man sits in deep thought with a pen held to his lips as he ponders his computer screen with a laptop open next to him on his desk in a home office environment.

    Are you wanting to add some new ASX 200 shares to your portfolio before the market rebound really takes off?

    If you are, then it could be worth considering the two shares listed below that have recently been tipped as buys. Here’s what experts are saying about them:

    Breville Group Ltd (ASX: BRG)

    The first ASX 200 share to look at is leading kitchen appliance manufacturer Breville.

    It has been growing at a solid rate for many years thanks to a successful combination of acquisitions, international expansion, and its consistent investment in research and development. The latter has ensured that Breville’s products are at the forefront of kitchen technology.

    The good news is that analysts at Goldman Sachs believe this solid form can continue. In fact, the broker is forecasting an EBITDA compound annual growth rate of 7% between FY 2023 and FY 2025. It recently commented:

    We see BRG as having a three-pronged growth strategy: 1) building on secular growth of the portioned and roast & ground (R&G) coffee market and achieving market share gains; 2) new market entry; and 3) options – ecosystem revenue streams.

    Goldman has a buy rating and $24.70 price target on its shares.

    Treasury Wine Estates Ltd (ASX: TWE)

    Another ASX 200 share that has been tipped as a buy is wine giant Treasury Wine.

    After a difficult few years, Treasury Wine returned to form in FY 2022 with some stellar profit growth. This was driven by the successful reallocation of its China-destined products and its premiumisation strategy.

    Analysts at Morgans are expecting this strong form to continue in the coming years. It recently commented:

    TWE owns much loved iconic wine brands, the jewel in the crown being Penfolds. We rate its management team highly. The foundations are now in place for TWE to deliver strong earnings growth from the 2H22 over the next few years. Trading at a material discount to our valuation and other luxury brand owners, TWE is a key pick for us.

    Morgans has an add rating and $13.93 price target on the company’s shares.

    The post Experts name 2 ASX 200 shares to buy before the market takes off appeared first on The Motley Fool Australia.

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    Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Treasury Wine Estates Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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  • Why did the Core Lithium share price fall off a cliff in September?

    A man holds his head in his hands, despairing at the bad result he's reading on his computer.

    A man holds his head in his hands, despairing at the bad result he's reading on his computer.

    The Core Lithium Ltd (ASX: CXO) share price may have been on form on Thursday but that wasn’t the case in September.

    This lithium miner’s shares were well and truly out of form last month and shed 20.7% of their value.

    This was very disappointing given that Core Lithium’s shares were up as much as 19% month to date at one stage.

    What happened to the Core Lithium share price in September?

    Investors were selling down the Core Lithium share price in the latter half of last month amid broad weakness in the lithium industry.

    This saw the likes of Lake Resources N.L. (ASX: LKE) and Sayona Mining Ltd (ASX: SYA) also record sizeable declines.

    The catalyst for this was investors selling higher risk investments like lithium shares after market volatility surged and stocks crashed due to concerns that rising interest rates could cause a global recession.

    Is this a buying opportunity for investors?

    The team at Macquarie is likely to see the recent weakness in the Core Lithium share price as a buying opportunity.

    According to a note this week, the broker has retained its outperform rating with a price target of $1.70.

    So, with Core Lithium’s shares currently changing hands for $1.16, this implies potential upside of almost 47% for investors over the next 12 months.

    Macquarie believes that Core Lithium is well-placed to benefit from sky high lithium prices. Particularly given its recent $100 million equity raising, which will be used to accelerate its growth.

    The post Why did the Core Lithium share price fall off a cliff in September? appeared first on The Motley Fool Australia.

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

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  • Good times keep rolling for ASX lithium shares on Thursday

    Team celebrating corporate success screaming with joy.Team celebrating corporate success screaming with joy.

    The battery metals trade continues to extend its legs in 2022, with lithium carbonate still trading at all-time highs of A$109,786 per tonne on Thursday.

    This continues a strong rally that started back in May, alongside several ASX lithium shares which have participated in the growth story.

    Demand-supply mismatch still key growth driver

    Chief to the upside in lithium pricing over the past two years is the asymmetry in demand for electric vehicles (EVs) and the supply of battery metals to fulfil this mandate.

    Recent government policy in both China and the USA – two of the largest EV markets – also supports the buying of EVs, and this has spurred additional growth for the sector in 2022.

    As such, there’s a significant mismatch in the demand-supply equation for battery metals, and this places ASX lithium producers front and centre to capitalise on the opportunity.

    The chart below shows the returns of Pilbara Minerals Ltd (ASX: PLS), Allkem Ltd (ASX: AKE), Sayona Mining Ltd (ASX: SYA), and Lake Resources NL (ASX: LKE).

    As seen, the price action for the ‘basket’ has been cyclical over the past 12 months, responding well to each major upshift in the lithium price.

    TradingView Chart

    Whereas other commodity baskets have receded to pre-pandemic levels, the market pricing for lithium has seen these key ASX players catch a strong bid since July.

    It is this kind of market strength that continues to result in ongoing investment in the lithium sector.

    For instance, today, Lake Resources announced that WMC Energy has obtained a strategic 10% stake in the company for a $1.20 per share consideration.

    Aside from the investment, the deal also includes an offtake agreement with Lake at its Kachi Project, in Argentina.

    The news was a good result for the ASX lithium share, which finished up 2% on the day following the announcement.

    Meantime, each of the ASX lithium shares mentioned finished in the green today. Pilbara Minerals ended the day 5.7% higher, Sayona Mining was up 4.3%, and Allkem climbed 1.8%.

    The post Good times keep rolling for ASX lithium shares on Thursday appeared first on The Motley Fool Australia.

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

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  • Boom! Guess which ASX All Ords share has surged 50% this week

    Two scientists in a Rhythm Biosciences lab cheer while looking at results on a computer.Two scientists in a Rhythm Biosciences lab cheer while looking at results on a computer.

    The All Ordinaries Index (ASX: XAO) has risen 5% this week, but one ASX All Ords share has stormed far higher.

    The Paradigm Biopharmaceuticals Ltd (ASX: PAR) share price has soared 53% since market close on 29 September. Paradigm entered a trading halt before market open last Friday and emerged from the freeze on Tuesday.

    Let’s take a look at why this ASX All Ords share is having such a good week.

    Clinical trial results

    Paradigm shares have been storming higher since the company released news of a successful clinical trial for osteoarthritis (OA).

    The drug company’s share price soared more than 20% on Tuesday and has kept storming higher since then. At market close today, the Paradigm share price gained another 19.5%, finishing the session at $1.93.

    Earlier this week, Paradigm advised the primary endpoint had been met for synovial fluid biomarkers in the PARA_OA_008 phase two clinical trial.

    Multiple osteoarthritis biomarkers were shown to favourably change over time in patients treated with injectable PPS (iPPS) compared to placebo.

    The trial also showed significant improvement in Western Ontario and McMaster Universities Osteoarthritis Index pain and function scores.

    Paradigm highlighted the promising market opportunity for osteoarthritis treatment. Market research found US customers would be willing to pay between US$2,000 and US$3,000 for the use of iPPS as a therapy for osteoarthritis. Worldwide, there were 303.1 million cases of osteoarthritis in 2017.

    Commenting on the news, chief medical officer Donna Skerrett said:

    We are encouraged by these preliminary data on the potential of iPPS to improve joint function and reduce the levels of biomarkers of cartilage degeneration in this translationally relevant model of naturally occurring OA.

    Paradigm recently conducted a $66 million capital raise. This will fund the company into the 2024 calendar year. The company will hold its annual general meeting on 18 November.

    Share price snapshot

    Paradigm shares have climbed more than 3% year to date, while they have soared 63% in the past week.

    For perspective, the ASX All Ords has lost nearly 10% year to date.

    Paradigm has a market capitalisation of about $539 million based on the current share price.

    The post Boom! Guess which ASX All Ords share has surged 50% this week appeared first on The Motley Fool Australia.

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

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  • Here are the top 10 ASX 200 shares today

    A group of businesspeople clapping.A group of businesspeople clapping.

    The S&P/ASX 200 Index (ASX: XJO) wobbled in and out of the green on Thursday before ultimately closing slightly higher. The index ended the day 0.03% higher at 6,817.5 points.

    It followed a similarly choppy night on Wall Street. The Dow Jones Industrial Average Index (DJX: .DJI), S&P 500 Index (SP: .INX), and Nasdaq Composite Index (NASDAQ: .IXIC) each stumbled at the last hurdle on Wednesday to post respective losses of 0.1%, 0.2%, and 0.4%.

    Higher oil prices likely buoyed the ASX 200 today. The S&P/ASX 200 Energy Index (ASX: XEJ) led the Aussie bourse, gaining 2.2%.

    Its day in the green came amid news the OPEC+ agreed to drop oil production by two million barrels a day, thereby assumably increasing demand. Seemingly in response, the Brent crude oil price lifted 1.7% to US$93.37 a barrel overnight, and the US Nymex crude oil price rose 1.4% to US$87.76 a barrel.

    The S&P/ASX 200 Materials Index (ASX: XMJ) also gained 0.5% today, while the S&P/ASX 200 Real Estate Index (ASX: XRE) weighed on the market, falling 0.9%.

    All in all, five of the index’s 11 sectors closed higher on Thursday, but which ASX 200 share outperformed all others? Keep reading to find out.

    Top 10 ASX 200 shares countdown

    The Whitehaven Coal Ltd (ASX: WHC) share price led the iconic index today, gaining 7% and reaching a new all-time high in intraday trade.

    Today’s biggest gains were made by these shares:

    ASX-listed company Share price Price change
    Whitehaven Coal Ltd (ASX: WHC) $10.46 7.17%
    Pilbara Minerals Ltd (ASX: PLS) $5.40 5.68%
    Link Administration Holdings Ltd (ASX: LNK) $3.27 5.14%
    Coronado Global Resources Ltd (ASX: CRN) $1.975 4.77%
    Sayona Mining Ltd (ASX: SYA) $0.245 4.26%
    AUB Group Ltd (ASX: AUB) $20.28 3%
    Woodside Energy Group Ltd (ASX: WDS) $34.75 2.6%
    Origin Energy Ltd (ASX: ORG) $5.70 2.52%
    Megaport Ltd (ASX: MP1) $8.71 2.35%
    Aurizon Holdings Ltd (ASX: AZJ) $3.57 2.29%

    Our top 10 ASX 200 shares countdown is a recurring end-of-day summary to let you know which companies were making big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

    The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

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    Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Link Administration Holdings Ltd and MEGAPORT FPO. The Motley Fool Australia has recommended Aurizon Holdings Limited, Austbrokers Holdings Limited, and MEGAPORT FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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  • Experts tip when inflation will peak, and it could be soon

    predictionprediction

    The latest monthly inflation data in Australia showed the consumer price index (CPI) gained 6.8% from July to August, down from 7% the previous month.

    The Reserve Bank of Australia’s decision on Tuesday to lift the cash rate by 25 basis points instead of the expected 50 has been a key benefactor to ASX shares this week.

    Markets have responded well, with the benchmark S&P/ASX 200 Index (ASX: XJO) climbing nearly 5% since the interest rate announcement two days ago.

    But the question that’s likely on everyone’s minds is when to expect pricing pressure to ease.

    While it’s a contentious topic, many experts have weighed in with their opinions.

    Inflation to peak soon?

    Unfortunately, forecasting inflation has proven to be something of an inexact science over the past two years.

    Even RBA governor Phillip Lowe acknowledged the central bank’s failings in accurately predicting the enormous spike in inflation in a recent speech.

    Federal treasurer Jim Chalmers told a media conference at Parliament House on Tuesday the RBA is very clear “they think there is more work to be done by tightening the interest rate”.

    Chalmers said:

    Clearly, we’ve still got an inflation problem in this economy…[plus] the effect of rising interest rates is often not immediate. Clearly, the [RBA] needs to take that into consideration.

    Our own Treasury forecasts expect inflation will get worse before it gets better, but it will get better and it will moderate during the course of next year.

    This aligns with Lowe’s remarks in the latest RBA policy statement that said the central bank will “increase interest rates further over the months ahead”.

    In a note to clients, ANZ chief economist David Plank also believes the RBA will need to lift rates further to see a reversal in inflation.

    This would mean a “move into clearly restrictive territory of more than 3% to ensure inflation does return to target [of 2-3%]”, Plank said.

    Meanwhile, SPI Asset Management says the RBA’s decision to lift the cash rate by 25 basis points and not 50 was based on market volatility rather than a sign of inflation cooling.

    The wealth management company said in a note:

    While inflation has yet to peak in Australia, the RBA’s more cautious hiking pace indicates that it is prepared to wait for the effects of monetary policy tightening already enacted to emerge more fully.

    Given the fact the RBA was slow to act on inflation in the first place, this could weigh in as well.

    As seen in the chart below, when inflation numbers began to spike past multi-year highs in 2021, the RBA didn’t act on interest rates until May 2022. The graph shows inflation prints [yellow and blue lines] versus the cash rate in the bottom pane.

    TradingView Chart

    In contrast, Betashares economists noted the RBA might be more focused on keeping the economy from entering into recession.

    “[M]ore of our currently high rate of inflation appears to reflect global factors, rather than local demand imbalances,” they said, cited by The Australian.

    Betashares experts agree the RBA is likely to continue its hiking cycle until mid-2023.

    Whether this will coincide with the peak of inflation, we will have to wait and see.

    The post Experts tip when inflation will peak, and it could be soon appeared first on The Motley Fool Australia.

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

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  • What can crypto investors expect from the Bitcoin price in October?

    Bitcoin logo

    Bitcoin logo

    The Bitcoin (CRYPTO: BTC) price is up 1% overnight, currently trading for US$20,310 (AU$31,134).

    That puts BTC up 8.6% already in October, with the crypto closing out September at US$18,694. (This figure will vary some depending on your time zone.)

    As we reported here, September was a rather remarkable month for Bitcoin. While the token didn’t shoot the lights out, it only lost 2% over the month. That compares to a 10.5% drop on the tech-heavy NASDAQ-100 Index (NASDAQ: NDX).

    With the Bitcoin price having tracked risk assets all year – though with rather magnified moves – September was the first month to see some break in that correlation.

    Well, that’s the month gone by.

    Now, what can crypto investors expect in October?

    What’s impacting the Bitcoin price in October?

    For some expert insight into that question, we turn to Josh Gilbert, market analyst at eToro.

    Gilbert noted that September was indeed a volatile month for most other asset classes. But the Bitcoin price remained relatively resilient, trading in a tight range.

    “There could be an argument that Bitcoin’s resilience comes after increased demand for Bitcoin, with significant volatility and uncertainty in foreign exchange markets,” like the British pound, he told The Motley Fool. Adding that this “was previously seen with the ruble during the Ukraine conflict”.

    As for the month ahead, Gilbert told us:

    Bitcoin’s price resilience in September paints a positive picture moving into October. Next week, CPI data out of the US will be another key test for Bitcoin. This will provide another insight into the macro environment, and a decline in inflation could boost crypto assets broadly.

    In addition, the market is starting to believe that the Fed will not hike as much as expected or will stop early, helping the current market.

    Cryptos have been hammered this year alongside risk assets like high growth tech stocks as the Federal Reserve and other global central banks, including the RBA, have aggressively hiked interest rates.

    With the cost of future earnings rising, the NASDAQ-100 has plummeted 30% this year, while the Bitcoin price is down 57%.

    If the Fed and other central banks scale back the rate increases, it should prove good news for tech shares and cryptos alike.

    But invest with due care.

    As Gilbert notes, “We still have a few more big hikes to come, and the Fed isn’t ready to turn dovish like the RBA just yet.”

    The post What can crypto investors expect from the Bitcoin price in October? appeared first on The Motley Fool Australia.

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    Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin. The Motley Fool Australia has positions in and has recommended Bitcoin. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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