Crypto Weekly: Increased focus on crypto mining
Senior Quantitative Analyst, Saxo Bank
Summary: The crypto market is making a small comeback after volatile days last week. The crypto mining landscape could be facing significant changes, and ETF providers look into greener ETF proposals.
Crypto mining in focus
A large part of the global computation power for crypto mining comes from China, and crypto mining in China is popular due to the many hydroelectric power plants, as well as the fact that China is a big producer of mining rigs. With Chinas recent intention to crack down on bitcoin mining and trading activities, some miners are looking to move from China. According to CoinDesk, the crypto exchange Huobi has already scaled back or suspended some of its mining-related services in mainland China, and other miners such as BTC.TOP and HashCow are reviewing their operations in China. The Shenzhen-based company Bit Mining also announced that they are expanding to new facilities in Kazakhstan. Lastly, Iran announced a ban of crypto mining over the summer.
Ray Dalio interview
The founder of the large hedge fund Bridgewater Associates, Ray Dalio, stated during Coindesk’s Consensus event that he sees Bitcoin catching on as a store of value in an inflationary future, and that he would “…rather have bitcoin than a bond”. The interview fueled some positive sentiment in the crypto market after a volatile week last week with record-high drawdowns. Dalio does, however, raise concerns about whether governments will tolerate crypto currencies.
ETF proposals going green
A new filing for a Bitcoin ETF from One River Digital Asset Management to the U.S. Securities and Exchange Commission (SEC) intends to be carbon-neutral. According to their filing, they intend “… to offset the carbon footprint associated with bitcoin by purchasing and retiring carbon credits necessary to account for the estimated carbon emissions associated with the bitcoins held by the Trust”. The ETF proposal adds to the pool of existing filings under review by the SEC, although with a greener agenda.
Quarterly Outlook Q2 2022
Quarterly Outlook Q2 2022: The End Game has arrived
- Shocks from covid and the war in Ukraine have forced the global financial and political world to change, but what will the end game be?
Productivity and innovation have never been more importantAs the world economy hits physical limits and central banks tighten their belts, could equities be facing a 10-15% downside?
The great EUR recovery and the difficulty of trading itIf the terrible fog of war hopefully lifts soon, the conditions are promising for the euro to reprice significantly higher.
Tight commodity markets – turbocharged by war and sanctionsWith supply already tight, commodities keep powering on. But will it last for yet another quarter?
Between a rock and a hard placeGeopolitical concerns will add upward price pressures and fears of slower growth, while volatility will remain elevated.
The Great ErosionInflation is everywhere and central banks try to combat it. But will they get it under control in time?
Australian investing: Six considerations amid triple Rs: rising rates, record inflation and likely recessionWhile global financial markets are struggling in an uncertain world, the commodity-heavy Australian ASX index is poised to keep a positive momentum.
Cybersecurity – the rush to catch up with realityWith the invasion of Ukraine, governments and private companies are rushing to reinforce their cyber defenses.