Square has announced the purchase of about 4,709 Bitcoins worth $50 Million, representing 1% of the company’s total assets and causing a much-needed boost in the price of Bitcoin.
“We believe that Bitcoin has the potential to be a more ubiquitous currency in the future.”
The San Francisco-based payments company stated that the economic empowerment role of cryptocurrency aligns with Square’s goals of enabling equal opportunities for everyone to take part in the global monetary system.
This investment adds to the growing list of Square’s bitcoin investments, from product development, leadership, and legal innovation through their recently launched COPA Alliance.
“As it grows in adoption, we intend to learn and participate in a disciplined way. For a company that is building products based on a more inclusive future, this investment is a step on that journey.”
Bitcoin Reacts To Square’s BTC investment
Bitcoin’s price reacted to the news with a 4% spike which saw Bitcoin break above $10,945 from a resistant trading range between $10,610 and $10,650.
Twitter and Square CEO Jack Dorsey said on Twitter that the company is also sharing with interested parties on how to purchase a huge amount of BTC in a short time.
“More important than Square investing $5mm in #Bitcoin is sharing how we did it (so others can do the same.)”
As a long time Bitcoin advocate, Jack Dorsey received support and approval after the announcement by notable personalities in the crypto space including Binance’s CEO CZ, and Tron’s Justin Sun.
Traders and analysts have expressed a sentiment that the news about Square’s investment will be good for the crypto market, especially after the price spike that almost saw bitcoin break above the $11,000 crucial level.
With the number of large companies like Square and MicroStrategy that are buying bitcoin on the rise, investors say that this shows increased confidence in Bitcoin and the onset of a new cycle.
Peter Schiff: Square’s Investment Barely Significant to Bitcoin
Bitcoin is currently trading at$10,879 following a slight correction. But the top coin would have to break above the $11,000 resistance mark and sustain support between $11100 and $11300 before gaining momentum for further upward movement, according to crypto analyst and trader Crypto Michael.
However, Bitcoin critic and gold trader Peter Schiff thinks that Square’s Bitcoin purchase is highly unlikely to be the mark of a new trend in the crypto market, as Jack Dorsey is not a new bitcoin investor.
“Bitcoin spiked 4% on news that Square invested $50 million (1%of total assets) into #Bitcoin. But that buying has already taken place. Speculators are betting the announcement will attract new buyers. The real news is Square’s buying failed to push Bitcoin above its 2019 high.”