Bubbles, Energy-consuming Bitcoin and the Latest Data Again
We’ve been informing you on inflated price bubbles in various financial markets—from cryptocurrency market to the stock one. But for now, no one cares, because there’s too much money and it needs to be put somewhere. The S&P 500 closed up at the 2.4% rate on Monday, the best day since June last year. And according to Bloomberg, investors poured a record $86 billion in stock ETFs in February.
But again, ignoring bubbles doesn’t negate the fact of their presence.
So, yesterday there was a replenishment in the ranks of those concerned about the current situation. China’s top banking regulator said he’s “very concerned” about the US and European bubbles.
Perhaps the reason for this statement is a certain unfairness of what is happening: the Chinese stock market has lost more than 10% over the past couple of weeks, but the SP500 index is in 1–2% of historical highs.
In addition, the regulator expressed concern about the rise in prices in the real estate market in China.
The biggest bubble right now is probably in the cryptocurrency market.
On the one hand, Citigroup released a report that said bitcoin could become the currency of global trading, and Goldman Sachs is reopening the trading floor for cryptocurrency trading.
On the other hand, energy consumption for mining is growing and its scale is already comparable to the scale of countries such as Argentina. As a result, China begins to think about banning mining, at least in certain regions of the country (Inner Mongolia).
Fun fact: One Bitcoin transaction has the same carbon footprint as Visa’s 680,000 transactions or 51,210 YouTube hours. So it’s only a matter of time before any environmentalists will take the issue seriously.
In terms of news, yesterday reminded the markets of the pandemic and lockdowns price to be paid. This refers to the disastrous data on retail sales and unemployment in Germany. The same is about data on Canada’s GDP, which showed that the country’s economy in 2020 lost 5.4%, which was the worst result in the last 60 years.
Today is interesting primarily because of the data on the US labor market from ADP, as well as the business activity indexes in the service sector from ISM.
But again, ignoring bubbles doesn’t negate the fact of their presence.
So, yesterday there was a replenishment in the ranks of those concerned about the current situation. China’s top banking regulator said he’s “very concerned” about the US and European bubbles.
Perhaps the reason for this statement is a certain unfairness of what is happening: the Chinese stock market has lost more than 10% over the past couple of weeks, but the SP500 index is in 1–2% of historical highs.
In addition, the regulator expressed concern about the rise in prices in the real estate market in China.
The biggest bubble right now is probably in the cryptocurrency market.
On the one hand, Citigroup released a report that said bitcoin could become the currency of global trading, and Goldman Sachs is reopening the trading floor for cryptocurrency trading.
On the other hand, energy consumption for mining is growing and its scale is already comparable to the scale of countries such as Argentina. As a result, China begins to think about banning mining, at least in certain regions of the country (Inner Mongolia).
Fun fact: One Bitcoin transaction has the same carbon footprint as Visa’s 680,000 transactions or 51,210 YouTube hours. So it’s only a matter of time before any environmentalists will take the issue seriously.
In terms of news, yesterday reminded the markets of the pandemic and lockdowns price to be paid. This refers to the disastrous data on retail sales and unemployment in Germany. The same is about data on Canada’s GDP, which showed that the country’s economy in 2020 lost 5.4%, which was the worst result in the last 60 years.
Today is interesting primarily because of the data on the US labor market from ADP, as well as the business activity indexes in the service sector from ISM.
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