- According to CoinDesk, as of 12:55 PM ET, the price of one bitcoin was $21,262.59.
- That’s an increase of about 10% from where bitcoin was trading at 5 PM ET on Thursday.
- According to Dow Jones Market Data, Bitcoin is set for its highest daily percentage gain since June.
The White House Has Released a Report Urging the Adoption of More Environmentally Friendly Crypto Mining Practices
According to a study published by the U.S. government on Thursday, cryptocurrency mining consumes as much energy as all traditional data centers worldwide, with the United States accounting for almost a third of this global total. The analysis suggests that Bitcoin should become more environmentally friendly if the country achieves its clean-energy targets.
President Joe Biden requested this study as part of a more extensive series of government investigations into cryptocurrency in the spring. All sorts of suggestions are made in the paper, from encouraging miners to provide more information about their energy use to requiring them to adopt renewable energy sources.
It’s an issue that Bitcoin miners are already working on. So, here’s an instance: Bitzero Blockchain proposes to convert a decommissioned missile complex on 200 acres in Cavalier County, North Dakota, to house a data center and greenhouse. This area is located close to the Canadian border.
Last week, each sector that makes up the S&P 500 index declined. This is the week that they may all rise.
Today, the S&P 500 has gained ground across all 11 subindexes, with ten subindexes in the green for the week. The energy sector lagged but has just turned positive with a 0.3% weekly increase.
If energy follows the rest of the market upward, it will be the first time since the two weeks ending February 5, 2021, that all 11 sectors have closed a week higher after falling the previous week.
Withdrawal of cash from company accounts
Goldman Sachs reports that the cash reserves of both AAA-rated and speculative corporate borrowers in the United States have returned to their pre-pandemic levels.
Without issuing too much new debt, companies with debt can withstand record inflation, interest rate rises, and a worsening economic outlook. In addition, companies had a chance to fortify their cash reserves in the face of low loan rates due to the epidemic.
Companies are dipping into their cash reserves despite a deteriorating economic climate that has triggered the first global bond bear market in decades. As the stock market’s summer boom has faded, the average yield on investment-grade corporate bonds has swiftly moved back toward previous highs. At the same time, rates on trash bonds are higher than they were in March 2020:
- Junk bonds increased to 8.23% from 4.42% in January.
- Higher-rated investment-grade bonds increased to 4.96% from 2.45% in January.
Esther George of the Federal Reserve Board has argued that the central bank must continue with interest rate hikes.
On Friday, Esther George, president and chief executive officer of the Federal Reserve Bank of Kansas City said the central bank must continue raising interest rates to help reduce very high inflation levels. However, she also suggested that the Fed might benefit from providing more clarity on its balance-sheet plans to help calm volatile markets.
The rationale for reducing policy accommodation is clear-cut, Ms. George said in prepared remarks, “with the policy rate still shallow, the balance sheet remaining approaching $9 trillion, and imbalances in the economy still holding up inflation.” However, the musings are “by how much” and “how fast,” she said.
Ms. George, a voting member of the Federal Open Market Committee, did not specify in her prepared comments how much of an increase in the federal funds rate target rate she would like to see at the monetary policy meeting on September 20-21. She also didn’t say how much higher she thinks rates should go from their current range of 2.25–2.50%.