The week that was:
A higher than expected CPI figure of 8.3% (compared to estimates of 8.1%) raised concerns about the federal reserve hiking interest rates even further causing markets to plummet. The S&P 500 took a dive of more than 5% during the past 5 days.
CleanSpark (CLSK) shares were down more than 23% in a highly volatile week.
As a source of artificial leverage on Bitcoin, Bitcoin miners have a tendency of moving more than Bitcoin itself in either direction.
Cleanspark stock has a beta of 3.41. A beta greater than 1.0 indicates the price is more volatile than the market. For example, if a stock’s beta is 1.2, it is assumed to be 20% more volatile than the market. With a beta of 3.41, Cleanspark is 241% more volatile than the general market.
Cleanspark’s fall in price comes despite reporting to have acquired 10,000 more Bitcoin mining machines in early September at a steep discount.
The US federal reserve is scheduled to meet and make a decision on interest rates this Wednesday. Markets are assigning an 82% chance of an interest rate hike of 75 basis points and an 18% chance of a rate hike of 100bps.
These probabilities suggest a rate hike of 75 basis points is probably already priced in the markets but a 100 basis points hike probably isn’t.
PIF will continue to buy advantageously as opportunities present themselves.
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