Bitcoin’s price has been keeping traders and investors alike with their eyes peeled on the market.
As you probably know by now, BTC suffered a pretty significant correction of more than 25% in just 24 hours, but it seems that the coin was able to bounce back in a really short period of time.
At the moment of writing this article, BTC is trading in the green, and the coin is priced at $38,506.11.
PayPal and Square to benefit from Bitcoin’s price movements
Mizuho Securities analyst Dan Dolev said that payment giants Square and PayPal would be able to benefit from Bitcoin’s wild price movements even if the king coin drops in price significantly.
During a new CNBC interview, Dolev explained that Square’s revenues had traditionally gone up even when Bitcoin was in bearish territory.
“We did some work. We looked all the way back to 2017 and what we found out is that the revenue from Bitcoin for Square continues to go up even in periods where Bitcoin actually doesn’t go up,” he said.
He continued and said: “So right now we’ve had a rally, a massive rally, since December or even November. So that’s easy to think about Bitcoin going to $100,000. But historically, even in periods where it was going down, the gross profit from Bitcoin has been going up.”
He also pointed out the fact that “the reason for that is two-fold. One, there are more users actually using or trading Bitcoin on the Cash App. And two, the number of transactions per user is going up. So what we’ve said in the note is that even if Bitcoin goes up to you know a $100,000 or stays at $30,000 or $10,000, Square will still benefit from it.”
He also said that holding BTC rather than making trades could be bad for Square. He brought up the subject of Bitcoin volatility.
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