Bitcoin Price Surged on Square’s Purchase of 4,700 BTC
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- Bitcoin Prices Surges on Square’s $50m BTC Purchase
- Investment represents 1% of Square’s total assets
- Square believes that BTC is an instrument of economic empowerment
Jack Dorsey’s Square announced yesterday that they have acquired approximately 4,709 at an aggregate purchase price of $50 million. The move was a surprise to the market as Bitcoin shot up to a high of $10,940 while previously trading at $10,520 as its lowest intraday level.
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In their publication, Square are welcoming the blockchain technology calling cryptocurrency “an instrument of economic empowerment” and addresses the potential for bitcoin to be a “more ubiquitous currency in the future”.
The news came at a time when Bitcoin and the overall cryptocurrency market were stagnant and uninteresting and trading with volatility at a relatively low point. The much-needed boost in Bitcoin seems to have proved quite efficient as the price is still holding up in the upper levels of the new reach, gravitating towards $10,900.
What’s next for BTC?
Indubitably, traders now eye the breaking of the $11,000 mark. The breakout was tried and failed two times in the last couple of weeks as Bitcoin attempted to go past it on Sep 28 and Oct 1. Since then, it’s been trading sideways in the range of $10,750 and $10,350 up until yesterday.
The $400 leap in Bitcoin, or 3.80%, brought some volatility in the overall asset class, as liquidity began to flow into altcoins, led by Ethereum (ETH) which saw uplifting yesterday of $20 going from $332 to $352.
As far as timing is concerned, the official announcement by Square was unexpected, hence the effect of surprise in the market. However, Square’s founder Jack Dorsey has long been a proponent of cryptocurrency so it shouldn’t come as a surprise that he will be pursuing new endeavors in the field. Square’s own CashApp even allows its users to invest in Bitcoin.
Square has now allocated 1% of its total assets in Bitcoin, a move that may help instill trust in Bitcoin and pave the way for tech companies to embrace the new asset class and make use of the technology behind it.