Bitcoin Price Could Triple This Year and Beat Dow to $40,000

  • Bitcoin can rally very strongly from here – Fundstrat Global Advisor founder Tom Lee
  • However, the Dow Jones Industrial Average would be the first one to break the 30,000

Bitcoin is back at $9,780 this week after breaching the $10,000 level over the weekend. However, as we reported the market is still looking at an “aggressively bullish trajectory.”

This was further reinforced by Fundstrat Global Advisor founder Tom Lee who sees Bitcoin shooting up to $27,000 this year.

While talking about the digital asset’s nearly 40% gains in 2020 so far, bitcoin bull explained that a lot of good things have happened with Bitcoin this year.

Bitcoin can rally very strongly from here

Last year, Lee says Washington killed the bitcoin rally but with the 2020 elections it’s sort of in the purview Washington and “bitcoin can rally very strongly from here,” he said.

He further talked about the deadly coronavirus risk and geopolitical tensions that would work as tailwinds for Bitcoin’s push to a new peak.

Not to forget that we are about three months away from the historically bullish event, bitcoin reward halving would result in the production of 900 BTC daily instead of the current 1,800 bitcoins. Cutting down the reward from 12.5 to 6.25 coins, this event would result in the digital asset inflation rate from 3.27% to 1.80%.

The digital asset would break into a new ATH this year

Additionally, just two weeks ago, we broke above the 200-day moving average, which means we are back in a bull market. Historically, on average, this breakout has resulted in six months gains of about 190%.

According to this, we would break into a new all-time high sometime this year that could be around $27,000-$30,000.

CT however, was quick to point out Lee’s prediction from early 2018 when he forecasted bitcoin price to jump to $91,000 by March 2020.

However, this time Lee believes the Dow Jones Industrial Average would be the first one to break the 30,000, though Bitcoin would be the one to hit $40,000, he said.

The stock market continues to hit new highs while gold’s calm

S&P 500 and Nasdaq already closed to new closing highs on Monday. This had S&P500’s year-to-date gains at 3.7% while Nasdaq’s 7.3%.

These gains on Monday were brought by a jump in Amazon shares, and big gains experienced by Microsoft and Boeing, helping investors shrug off concerns over coronavirus.


Bridging lending breaks new records in Q2 2019

Bridging loan books grew to a record £4.62bn at the end of the second quarter of this year, representing growth of 11.7% compared to Q1 2019 and an increase of 14.4% on the same quarter last year.

Bridging loan applications also hit a record total in the 12 months preceding the end of Q2 2019, with £22.13bn of applications representing a 9.7% increase on the same period the previous year.

This is according to figures compiled by auditors from data provided by members of the Association of Short-Term Lenders (ASTL), which confirmed that more than £1bn of bridging loans were written in the second quarter of this year, an increase of 11.8% on the previous quarter and a rise of 4.1% on the same period last year.

There were £5.69bn of bridging loan applications in Q2 2019, which is 4% lower than the first quarter of the year but 5.3% more than the same period in 2018.

Benson Hersch, CEO of the ASTL says: “The second quarter of this year has delivered some very strong results for bridging lending, with record values both for applications over a 12-month period and total outstanding loan books. In fact, nearly all measures were higher than last quarter and the same period in 2018. The wider political and economic environment remains uncertain and the challenge for the industry now is to continue this level of activity whilst maintaining high standards of underwriting and customer focus.”

The ASTL Data Survey: Q2 2019

These figures are taken from the responses from ASTL members, which include most of the key lenders in the bridging market.

 


Total Returns for Student Accommodation up 12.3% Year-on-Year

Capital values for student properties increased on an annual basis, according to the latest Student Accommodation Index by CBRE.

In the year to September 2018, capital values for student assets rose by 6.5%, surpassing last year’s growth of 4.5% in the same period.

Gross and net rents increased on an annual basis by 3.0% and 3.4% respectively, whilst total returns at a national level rose by 12.3%.

Separating the figures by region reveals that capital values in Central London were up 12.4% in the year to September 2018, bringing total returns to 17.5% compared to 14.2% last year.

Annual total returns for regional student accommodation for 2018 reached 10.5%, with a 4.5% increase in capital values.

The regional figures were additionally divided into Super Prime, Prime, and Secondary locations, which had capital growth of 11.1%, 6.0% and -9.0% respectively, whilst net rental value growth was positive in Super Prime (3.6%) and Prime (3.9%), compared to a 1.5% decline in Secondary locations.

Capital values increased for larger student accommodations of 500+ beds by 7.2%, bringing total returns to 12.9%.

Medium-sized properties (250-500 beds) reported a 6.2% growth in capital values and a 12.2% increase in total annual returns, whilst smaller properties of fewer than 250 beds had capital growth of 5.8% and total returns of 11.6%.

Commenting on the figures, CBRE’s Head of Student Accommodation Jo Winchester said, “This first published Student Accommodation Index demonstrates the continued strong performance of the sector which has outperformed the CBRE Monthly Index over the last 8 years.

“UK Student Accommodation is now firmly established as a mainstream investment sector. Investors will find the increasingly sophisticated raft of influences on performance highlighted by this index, including location, asset scale, university rankings, applications, and distance to university very informative.”


First house price fall in England since 2012

House prices are lower in England compared with a year ago – the first annual fall in property values since 2012, according to the Nationwide.

In the first three months of the year, prices in England were down 0.7% from the same period in 2018.

But the building society said that annual house price rises in Northern Ireland, Scotland and Wales meant the UK average was still growing.

The typical home was valued at £213,102, the Nationwide said.

Based on its own lending data, the building society said UK house prices in March were up 0.7% from the same month a year earlier.

Robert Gardner, the building society’s chief economist, said that the number of sales and the number of mortgages approved for house purchases had remained “broadly stable”.

However, he said that consumer surveys had suggested buyers and sellers were taking a more cautious approach. This has come as a result of a lack of Brexit clarity.

Sam Mitchell, chief executive of online estate agents Housesimple, said: “The market would have preferred a decision one way or the other. Instead, we are now in this state of short-term limbo leaving many buyers and sellers unsure what to do.

“Normally, we would expect to see a spike in transaction levels around this time as we enter the traditional spring bounce period, but with the extension to the EU leaving date, the bounce is likely to be a little subdued this year.”

Andrew Montlake, director of mortgage broker Coreco, said: “London is particularly sensitive to ongoing political uncertainty but it is also paying for the astronomic house price growth of five or six years ago.”


This was seen in figures comparing house prices in the first three months of this year with the same quarter in 2017.

On this measure, house prices in London had fallen by 3.8% – the biggest fall for a decade, the Nationwide said. However, properties in the capital remained the most expensive in the UK at an average of £455,594.

Prices in the commuter belt around London and the South East of England also fell compared with a year ago, driving the drop in England as a whole.

Over the same period, property values in Wales increased by 0.9%, rose by 2.4% in Scotland, and went up by 3.3% in Northern Ireland.

However, prices in Northern Ireland are still more than 35% below their high in 2007, the Nationwide said.

 

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Space for 1 million new homes on derelict ‘brownfield’ land, analysis reveals

‘Building on brownfield land presents a fantastic opportunity to simultaneously remove local eyesores and breathe new life into areas crying out for regeneration.’

More than a million new homes could be built on land currently sitting unused across England, according to new analysis.

Brownfield land”, which has previously been built on but is now derelict, could be transformed into vast swathes of housing within the next few years.

The (CPRE) said such measures would regenerate run-down areas without destroying precious stretches of countryside to meet the UK’s housing needs.

As it stands, the government is committed to building 300,000 new homes each year in England to meet demand, and there have been warnings of severe backlogs.

Meanwhile, local groups and green campaigners are concerned about the impact projects such as the massive Oxford-Cambridge development will have on nature and communities. Analysis performed by CPRE using data from Brownfield Land Registers identified over 18,000 sites on which new houses could be built with minimal impact on the environment.

It said two-thirds of this land was ready to be transformed and could begin contributing to the country’s unmet housing needs within just five years.

However, the campaigners said they were concerned with current definitions of “previously developed land” were not comprehensive enough, meaning there could still be a large number of sites being overlooked.

“Building on brownfield land presents a fantastic opportunity to simultaneously remove local eyesores and breathe new life into areas crying out for regeneration,” said Rebecca Pullinger, planning campaigner at the CPRE.

“Councils have worked hard to identify space suitable for more than 1 million new homes.

“But until we have a brownfield-first approach to development, and all types of previously developed land are considered, a large number of sites that could be transformed into desperately needed new homes will continue to be overlooked.”

Research by the group in Enfield identified space for 37,000 homes on sites they identified as a brownfield, 17 times more than official estimates.

CPRE suggested areas including supermarket carparks and “poorly-used industrial or commercial sites” could be regenerated into housing areas with few repercussions.

“The government, local councils and housebuilders, must work hard to bring these sites forward for development and get building,” said Ms Pullinger.

Local Government Association housing spokesperson Martin Tett said: “Councils are committed to bringing forward appropriate sites and ensuring homes are built where they are needed, are affordable, of high quality and supported by adequate infrastructure and services.

“This timely report highlights the availability of sites across the country to deliver enough homes and infrastructure to begin to address the national housing shortage we face.”

Mr Tett said the government must provide councils with the power to speed up developments and set planning fees locally to ensure they are adequately resourced.

Responding to the new analysis, housing minister Kit Malthouse said: “This government is committed to building the homes our country needs while still leaving the environment in a better state than we found it.

“We’re encouraging planners to prioritise building on brownfield land and working with local authorities to ensure sensible decisions are made on where homes get built.”