Bitcoin price has increased after news got out that Square, Paypal’s direct rival, had invested in the digital asset.
The firm, which is owned by Twitter’s Jack Dorsey, stated that they had bought Bitcoin worth about $170 million. This was done when the average Bitcoin price was $53,125. Square had previously invested $50 million worth of the digital asset sometime back. This latest acquisition shows that about 5% of the company’s net cash reserves and securities for 2020 were invested in Bitcoin.
Earlier today, Microstrategy also announced the purchase of over $1 billion worth of the crypto asset.
Bitcoin Price Rises
Bitcoin price jumped by about five percent after the news of the payment service came on the air. It caused the price to hit the $51,398 mark before it corrected modestly to a lower price. The cryptocurrency’s support level held at its 20—day green wave that later pushed its recovery off after sell-offs that occurred for two days straight.
The caliber of names that invested in the digital asset spurred the price retracement action. These heavyweights would cause other companies to massively invest in cryptocurrency. The way the US dollar is currently being devalued due to the policies being rolled out by the Joe Biden administration is a call to action for companies to invest in digital assets quickly. Another gas lighter is the stimulus package that’s being shared among the US citizens, proposed by the Office of the President of the United States.
A veteran supporter of BTC known as Vijay Boyapati stated that companies who get to engage in the crypto market now would have amassed more subsequently as their reserved funds dissipate if it weren’t for the newcomers.