The bitcoin and cryptocurrency community was yesterday set alight by news payments company Square SQ , led by Twitter TWTR chief executive and outspoken bitcoin advocate Jack Dorsey, had bought $50 million worth of bitcoin.
The bitcoin price, which has been hovering at just over $10,000 since early September, has jumped more than 5% following the news—climbing over $11,000 and potentially resuming the bull run that drove it from lows of under $4,000 in March to over $12,000 by August.
Today, the bitcoin price has continued to rally and remains closely tied to broader markets that were yesterday boosted by renewed faith U.S. lawmakers will soon agree on a large-scale stimulus bill.
The bitcoin price has jumped 5% since yesterday, with the bitcoin and cryptocurrency community ... [+]
SOPA Images/LightRocket via Getty Images"Investors continue to be focused on the potential for more stimulus measures," Russ Mould, investment director at brokerage AJ Bell, said via email, adding global markets are "keeping an eye" on U.S. political developments.
On Thursday, the White House reportedly signalled it wanted to secure a large-scale stimulus bill, a head-spinning u-turn from earlier in the week when U.S. President Donald Trump abruptly ended talks via Twitter—sending traditional markets and the bitcoin price sharply lower.
"On super long-term charts, bitcoin has always been somewhat related to the stock markets, behaving as one might expect of a high-risk asset, especially reacting loosely to the addition or removal of stimulus from central banks," Mati Greenspan, the founder of market analysis group Quantum Economics said in an email newsletter this week, pointing to "increased participation from institutional traders" as strengthening this relationship even on short-term charts.
The bitcoin price began to climb along with stock markets yesterday, coinciding with Square's revelation it had bought 4,709 bitcoins at the price of $50 million—about $10,600 per coin and representing almost 1% of the company's total assets as of the second quarter of 2020.
The bitcoin price has added almost 5% over the last few days, climbing along with the stock markets ... [+]
CoinbaseSquare, along with its CEO Jack Dorsey, has long championed bitcoin and its underlying philosophy of decentralization.
Dorsey, who earlier this month said bitcoin is "probably the best" native currency of the internet, has previously gone as far as saying bitcoin has the potential to be the world’s sole currency by 2030.
Back in 2014, Square began letting merchants accept the cryptocurrency, rolling out bitcoin buying and selling on its popular Cash App in 2018 and reporting bitcoin operations revenue grew 367% annually in the first quarter of this year. Square Crypto, an independent team within the company, was created last year tasked with supporting open-source bitcoin development.
"We believe that bitcoin has the potential to be a more ubiquitous currency in the future," Amrita Ahuja, Square's chief financial officer, said in a statement announcing the company's bitcoin holding.
Square has become the second publicly-traded company in three months to add bitcoin to its balance sheet, following business intelligence and software company MicroStrategy's MSTR $425 million bet on bitcoin over the summer.
The Link LonkOctober 10, 2020 at 06:04AM
https://www.forbes.com/sites/billybambrough/2020/10/09/forget-jack-dorsey-and-square-is-this-the-real-reason-bitcoin-has-suddenly-soared/
Forget Jack Dorsey And Square—Is This The Real Reason Bitcoin Has Suddenly Soared? - Forbes
https://news.google.com/search?q=forget&hl=en-US&gl=US&ceid=US:en
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