The report highlighted that Bitcoin mining can convert wasted methane emissions into less harmful emissions.
A paper published by the Institute of Risk Management (IRM) concluded that Bitcoin (BTC) has the potential to be a catalyst for a global energy transition.
IRM Energy and Renewables Group members Dylan Campbell and Alexander Larsen published a report titled “Bitcoin and the Energy Transition: From Risk to Opportunity.” The paper argued that while BTC was perceived as a risk because of its energy consumption, it can also catalyze energy transition and lead to new solutions for energy challenges worldwide.
Within the report, the authors also highlighted the important function of energy and the increasing need for reliable, clean and more affordable energy sources. Despite the criticisms of Bitcoin’s energy intensity, the study provided a more balanced view of Bitcoin by showing the potential benefits BTC can bring to the energy industry.
According to the report, Bitcoin mining can reduce global emissions by up to 8% by 2030. This can be done by converting the world’s wasted methane emissions into less harmful emissions. The report cited a theoretical case saying that using captured methane to power Bitcoin mining operations can reduce the amount of methane vented into the atmosphere.
The paper also presented other opportunities for Bitcoin to contribute to the energy sector. According to the report, Bitcoin can contribute to energy efficiency through electricity grid management by using Bitcoin miners and transferring heat from miners to greenhouses.
“We have shown that while Bitcoin is a consumer of electricity, this does not translate to it being a high emitter of carbon dioxide and other atmospheric pollutants. Bitcoin can be the catalyst to a cleaner, more energy-abundant future for all,” the authors wrote.bitcoin crypto btc crypto
South Korean exchange Upbit gets initial license nod from Singapore
Upbit Singapore scored initial approval from the country’s central bank and financial regulator for a local crypto license.
Upbit Singapore scored initial approval from the country’s central bank and financial regulator for a local crypto license.
The Singapore entity for Upbit, South Korea’s largest exchange by volume, has been given in-principal approval for a Major Payment Institution (MPI) license in Singapore.
On Oct. 16, Upbit Singapore said the Monetary Authority of Singapore (MAS) gave the in-principle license nod, allowing it to continue with digital payment token services to institutional investors while awaiting its full license.
Upbit Singapore founder and CEO Alex Kim said in a statement that the firm was founded in 2018 but called the recent approval a strategic milestone for it to deepen its local presence.
Azman Hamid, the firm’s compliance chief, said the approval reflects its commitment to building its businesses in Singapore. “We will contribute to further establish Singapore as the leading hub for the next generation of financial businesses,” he added.
A potential full approval for Upbit would see the exchange join a total of 15 crypto firms with full MPI digital payment token serve licenses from MAS.
In October alone, the Singaporean entities for Coinbase, Ripple and Sygnum Bank all received license approvals from MAS — pushing the number of MAS-licensed digital payment token service firms to 15.
On Oct. 2, Coinbase received full approval for its MPI license, with crypto trading firm GSR scoring in-principal approval for its MPI the same day. Swiss crypto bank subsidiary Sygnum Singapore scored its full MPI license a day later and Ripple received its full MPI on Oct. 4.crypto crypto
Everyone Suddenly Hates U.S. T-Bonds: What that Means and Why It’s Important to Stocks and Everything Else
No One Seems to Want U.S. Treasury Bonds. Does This Sound Familiar?The slightly-hotter-than-predicted PPI and CPI numbers certainly put a temporary damper…
No One Seems to Want U.S. Treasury Bonds. Does This Sound Familiar?
The slightly-hotter-than-predicted PPI and CPI numbers certainly put a temporary damper on the recent short covering rally in stocks and bonds, raising investor fears about further interest rate increases. But, as I've noted recently, fear is often the prelude to a buying opportunity.
Such an opportunity may be developing in the U.S. Treasury Bond market and related interest-sensitive sectors of the stock market, such as homebuilders, real estate investment trusts, and select technology stocks. Still, the financial markets are reaching a decision point, as:
- The market's breadth faces a test of support;
- Oil prices rebound;
- Bond yields trade at extraordinary levels; and
- Geopolitical storms arise and escalate in multiple regions simultaneously.
There Are No Bond Bulls Left
Suddenly, no one wants to own U.S. Treasury Bonds. This bearish climate resembles the negative market sentiment we saw in crude oil back in May 2022, right before prices bottomed and rallied well into the early fall.
The headlines blame inflation for the rise in rates. But that's only part of the story, as the recent climb in yields, such as what we've seen in the U.S. Ten Year Treasury Note (TNX) over the past few weeks, is also due to what may be coordinated selling by China, Brazil, and Saudi Arabia, according to a report on the crypto site The Daily HODL, which noted the BRICS trio, combined, sold over $17 billion in U.S. Treasuries in the month of September alone.
From an investment standpoint, what's important is that this highly unusual trading pattern often precedes a trend reversal, which seems to be unfolding in fits and starts. Let's put this in perspective. TNX is now trading between two and three standard deviations above its 200-day moving average; an event which has exceeded normal long-term pricing expectations by a two to threefold margin.
The key to this price chart is the area between the upper red and blue lines. Those are not moving averages; they are Bollinger Bands. The red line is three standard deviations above the 200-day moving average, while the blue line marks two standard deviations above the 200-day moving average. In other words, TNX is trading so far above what is considered "normal" that it's in uncharted territory, as defined by its standard deviations from the norm.
This is unsustainable, which means that when the reversion to the mean occurs, it should be quite sizeable. If there is no reversion to the mean, then the bond market is being redefined. I don't know what that means, but it doesn't sound like it would end well given its central role in global finance. The key is what happens at the 4.5% yield and the RSI 50 level. If yields fall below those two important benchmarks, it would signal that the bond market is getting back to a more normal trading pattern.
This rise in TNX has triggered an equally unsustainable rise in mortgage rates, which would be expected to lead to a crash in homebuilder stocks.
And yet the SPDR S&P Homebuilders ETF (XHB), although in a price correction, has not made a new low in response to the most recent spike in yields and mortgage rates. This is a bullish development for patient investors in homebuilder stocks. As long as XHB holds above the 200-day moving average, the homebuilder trade remains constructive.
Join the smart money at Joe Duarte in the Money Options.com, where I have just added five homebuilder stocks to the model portfolios. You can have a look at my latest recommendations FREE with a two-week trial subscription. And for frequent updates on real estate and housing, click here.
Picking Up the Pieces in the Oil Patch
The oil sector has quickly recovered after being sold aggressively in response to a 10/4/23 U.S. EIA report, which showed a larger-than-expected build in gasoline supplies. The market was well overbought ahead of that and was certainly ripe for such an event.
That said, the initially rapid decline in crude has slowed, partially due to the unfolding events in Israel and the potential for oil supply disruptions. All of which begs the question of what's next for the oil sector.
West Texas Intermediate (WTIC) has found support at the $85 area near its 50-day moving average and now looks to get back above $90. If successful, look for another attempt to move above $95.
The diversified Energy Sector SPDR ETF (XLE) has recovered, moving back above its 50-day moving average after last week's sudden selloff, which took it to a nearly oversold RSI reading. It does have a substantial amount of support in the combination of a huge block of Volume-by-Price (VBP bars), as well as the 200-day moving average as far down as $84. Accumulation/Distribution (ADI) and On Balance Volume (OBV) both turned up to confirm the return of positive money flows into the sector.
The Van Eck Oil Service Sector ETF (OIH) held up better than XLE on the selloff, but has not rebounded to the same degree. It has found support near its 50-day moving average, while ADI and OBV are turning up as well.
A more bullish pattern is visible in the iShares U.S. Oil & Gas Exploration ETF (IEO), which is nearing its recent highs and is on the verge of a breakout. I recently posted two new energy stock trades at Joe Duarte in the Money Options.com here.
Incidentally, if you're looking for the perfect price chart set up, check out my latest YD5 video, where I detail one of my favorite bullish setups. This video will prepare you for the next phase in the market.
The Market's Breadth Remains Above Support
The NYSE Advance Decline line (NYAD) remained below its 200-day moving average last week, but again remained above its recent March and May bottoms. A break below those levels would be very bearish. On the other hand, any further weakness in NYAD would lead to an oversold reading in the RSI, which could be the final washout of this correction.
The Nasdaq 100 Index (NDX) continues to test the 14500-15000 trading range area, with support at its 50-day moving average. ADI and OBV are both bouncing, which means short-covering (ADI) and buying (OBV) are occurring simultaneously.
The S&P 500 (SPX) is struggling between the 4250-4400 area, with the 50-day moving average providing overhead resistance. ADI is rising as short sellers cover their positions. If OBV turns up, it will be even more bullish.
VIX Remains Below 20
As it has done for the past few weeks during which the market has corrected, VIX has remained stubbornly below the 20 area despite multiple attempts to rise above this key chart point. A move above 20 would be very negative.
When the VIX rises, stocks tend to fall, as rising put volume is a sign that market makers are selling stock index futures to hedge their put sales to the public. A fall in VIX is bullish, as it means less put option buying, and it eventually leads to call buying, which causes market makers to hedge by buying stock index futures. This raises the odds of higher stock prices.
To get the latest information on options trading, check out Options Trading for Dummies, now in its 4th Edition—Get Your Copy Now! Now also available in Audible audiobook format!
In The Money Options
Joe Duarte is a former money manager, an active trader, and a widely recognized independent stock market analyst since 1987. He is author of eight investment books, including the best-selling Trading Options for Dummies, rated a TOP Options Book for 2018 by Benzinga.com and now in its third edition, plus The Everything Investing in Your 20s and 30s Book and six other trading books.
To receive Joe's exclusive stock, option and ETF recommendations, in your mailbox every week visit https://joeduarteinthemoneyoptions.com/secure/order_email.asp.treasury bonds bonds sp 500 nasdaq stocks crypto mortgage rates real estate etf crypto oil
Australian Treasury proposes to regulate crypto exchanges, not tokens
The Australian treasury’s newly-released consultation paper will require to crypto exchanges to apply for financial services licence from the local financial…
The Australian treasury's newly-released consultation paper will require to crypto exchanges to apply for financial services licence from the local financial regulator.
The Australian federal government is charging forward with plans to regulate the digital asset sector at the exchange level, and may soon require cryptocurrency exchanges to hold a financial services license issued by the local financial regulator.
In the newly-unveiled “Regulating digital asset platforms” consultation paper, released on Oct. 16, the Australian Treasury said that the new regulatory framework aims to address consumer harms while still supporting innovation in the digital asset sector.
The core theme of the new regulatory framework is that it aims to regulate cryptocurrency exchanges and service providers instead of individual cryptocurrencies or tokens themselves. Additionally, the consultation paper explained that it will regulate crypto exchanges under pre-existing financial services laws, instead of crafting new crypto-specific rules.
The proposal has seen a mixed reaction from crypto exchanges operating in Australia.
Australian crypto exchange Swyftx's general counsel Adam Percy called the proposal "thoughtful" and agreed that "the primary focus should be to make sure cryptocurrency users can access blockchain technology with appropriate protections and that there’s room for innovation."
Jonathon Miller, the Director of Kraken Australia, however, expressed his disappointment at the latest developments, saying that the consultation paper was essentially “shoehorning" crypto in existing financial services regulation.
"We’re behind our global peers when it comes to implementing a crypto framework, so I appreciate the need to have something in place locally to provide certainty to platforms like ours," Miller said. "Our concern is that this approach creates ample opportunities for the regulation to ignore the nuances of the technology."
"I’m hopeful that we can work collaboratively with the Government to make sure we don’t snuff out the benefits of future innovations in crypto that might fall outside the conventional ‘financial services’ box.
Liam Hennessey, partner at international law firm Clyde & Co said that while its clear that the Treasury is still "grappling" with all of the different types of tokens and services providers, it's crucial to remember that all new proposals set out in the consultation paper are still only suggestions, and are not legally binding recommendations.
"Whatever the Treasury suggests, it is just that – a suggestion only. The Government is not bound to follow its recommendations, and there will be lobbying once the consultation paper comes out."
Hennessy said that the consultation paper arguably doesn't address the more pressing issues facing the crypto industry in Australia, like issues such as the recent slew of de-banking.
"Many licensed digital assets exchanges, both domestic and international, are struggling to find adequate banking arrangements," said Hennessy.
This is a developing story, and further information will be added as it becomes available.cryptocurrency blockchain crypto crypto
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