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- Bitcoin rallied following the Fed minutes release.
- Authorities believe crypto mining may hinder attaining net zero emission goals.
As the cryptosphere has gotten more than a decade old now, crypto mining has become a common term for the people globally. From individuals to organizations, everyone is setting their shops in the digital asset sector to mine this virtual treasure by solving complex mathematical problems using high end machinery. However, the market turned into a total nightmare last year and affected several companies linked to the sector.
Inflation Remains Primary Concern for The Fed
Riot Blockchain (NASDAQ: RIOT) stock rose by over 2% yesterday. An American news magazine backed by Dow Jones and Company, Barron’s, reported that Bitcoin (BTC) price increased after the Federal Reserve released the meeting minutes. The Fed noted a slow down in rate hikes which is probably why the flagship crypto asset gained on Wednesday. Moreover, bad reading in Personal Consumption Index (PCI) could also affect the currently upward moving cryptosphere.
According to CNBC, inflation still remains the primary concern for the Fed. Statista data shows that inflation in the US has declined from 9.1% in June 2022 to 6.5% in January 2023. Major indexes Dow Jones Industrial Average and S&P 500 went down by 0.26% and 0.16% after the Fed minutes release. However, Nasdaq rose by around 0.13%.
Crypto mining industry may be looking at a major turmoil considering how governments are trying to reduce ill-effects of the activity on the environment. The White House believes that rising crypto assets could be a major hindrance for the nation’s commitment to attain zero net carbon emissions.
The Office of Science and Technology Policy (OSTP) has highlighted opportunities and challenges that come with this technology. Moreover, they’ve provided solutions to attain clean energy and climate goals. The Executive Mansion also points to how energy intensive digital assets are, and the United States is a major segment in the crypto market.
RIOT Stock Price Action
A major downturn started in August 2022 and stayed perpetual throughout the year, losing almost 70% value during the period. Price broke the regression channel by the end of December 2022. The chart also highlights poor quarterly earnings, supporting the bear run.
Chop zone shows the shares breaking a short consolidation phase this month, while returning to a positive momentum. MACD was seen rising, however, seller dominance remains persistent. The shares currently hold a support close to $5.9 and resistance at around $7.
Last year, Ethereum (ETH) shifted their consensus algorithm from proof-of-work to proof-of-stake to eliminate carbon emissions from the blockchain. However, BTC blockchain still operates on the PoW mechanism and Riot Blockchain remains one of the core Bitcoin supporters.
Authorities believe the PoS mechanism can significantly help them achieve the net zero carbon goal, consequentially ending the crypto mining run for good.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.
