RIOT Stock: Crypto Mining Undermines US National Interest

The price of Bitcoin surged after the Federal Reserve released its minutes.

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Crypto mining is believed to be a hindrance to the goal of net zero emissions, according to authorities.

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Crypto mining has become a common term in the global community in recent years since the crypto-sphere has gone on for more than a decade now. Individuals, companies, and governments all are setting up shops in the digital asset sector to exploit this virtual treasure by solving complex mathematical problems using high-end machinery in order to mine this virtual treasure. The market, on the other hand, turned into a total nightmare last year, affecting a number of companies that are associated with this sector.

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The Fed remains concerned about inflation

The stock price of Riot Blockchain (NASDAQ: RIOT) rose by more than 2% yesterday. As reported by Trade Algo, a United States news magazine backed by Dow Jones and Company, Bitcoin's price (BTC) increased after the Federal Reserve released the minutes of their last meeting as a result of the release of the meeting minutes. There was a slowdown in the rate hikes by the Fed on Wednesday, which is probably one of the reasons why the flagship crypto asset gained on the day. In addition, a poor reading on the Personal Consumption Index (PCI) could also have a negative impact on the currently upward-moving cryptocurrency market.

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Inflation remains the Fed's primary concern, according to Trade Algo, despite recent changes to the Fed's policy. The latest Statista data shows that the inflation rate in the US has declined from 9.1% in June 2022 to 6.5% in January 2023, according to Statista. Several major indexes, including the Dow Jones Industrial Average and the S&P 500, have dropped by 0.26% and 0.16% respectively after the Fed minutes were released. The Nasdaq, on the other hand, rose by around 0.13% over the same period.

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Considering how governments are trying to reduce the negative effects that crypto mining may be having on the environment, it is possible that the crypto-mining industry is facing some major turmoil in the near future. Crypto assets are believed to be a major hindrance to the nation's efforts to achieve zero net carbon emissions by 2050, according to the White House.

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It has been highlighted by the Office of Science and Technology Policy (OSTP) that this technology is both an opportunity and a challenge. Furthermore, they have provided solutions to meet the goal of achieving clean energy and climate change. As well as pointing out how energy-intensive digital assets are, the Executive Mansion can also be used to illustrate the fact that the United States is a major market in the crypto space.

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Stock price action for RIOT

As the year 2022 came to an end, the market suffered a major downturn starting in August 2022, which lasted throughout the entire year, losing almost 70% of its value. It is expected that the price will break out of the regression channel by the end of December 2022. Moreover, the chart shows poor quarterly earnings, which is also indicative of the bear run in the stock market.

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The chop zone indicates that this month's share price has broken out of a short consolidation phase while also returning to positive momentum. It was observed that MACD was rising, however, seller dominance remained persistent throughout the period. There is currently a strong support level of around $5.9 and a strong resistance level of around $7 for the shares.

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In order to eliminate carbon emissions from the blockchain, Ethereum (ETH) changed its consensus algorithm from proof-of-work to proof-of-stake last year to eliminate proof-of-work from its algorithm. Despite this, the Bitcoin blockchain continues to operate on the Proof-of-Work mechanism and Riot Blockchain remains one of the core Bitcoin supporters.

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The authorities believe that the PoS mechanism can significantly help them achieve the net zero carbon goal, which in turn will result at the end of crypto mining as we know it.

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Disclaimer

These views and opinions are for informational purposes only and do not constitute financial, investment, or other advice. Trading or investing in crypto assets entails financial risk.