Connect with us

Hi, what are you looking for?

ELEVENEWS

Bitcoin

Bitcoin price recovers above $50,000 as Square buys $170M worth of BTC

  • Square acquires $170 million worth of Bitcoin.
  • Bitcoin’s price has reversed to hit a high above $50,000.
  • Bitcoin liquidation becomes a concern for analysts.

Bitcoin price rises

After Bitcoin price made an all-time high, the price took a huge dip on Monday to about $47,000. The crash extended to the following day as the price dropped further to hit a low at $45,000. The drop was linked to the comments from the U.S. Treasury Secretary when she referred to Bitcoin as very inefficient.

However, bitcoin has made a huge recovery following the news of Square going bullish on Bitcoin. Square, a Paypal rival, had earlier this year acquired about $50 million worth of Bitcoin. The payments firm has bought the dip on Bitcoin today at $53,125.

The firm bought an additional $170 million worth of Bitcoin. At the moment, the total worth of Bitcoin purchased by the company so far now stands at $253 million. The total Bitcoin in Square’s custody is about 5% of its last recorded cash reserve, cash equivalents, and marketable securities.

The market has reacted to the purchase as Bitcoin price rose to an intraday high and then retraced. A report reveals that the shallow correction could drive more institutions traders to buy more Bitcoin. It further stated that the only drivers that could make that happen right now are high inflation and devalued currency.



Bitcoin liquidity concerns

Analysts have raised concerns about the liquidity problems of Bitcoin. One of the concerned analysts, crypto economist Ben Lilly, noted through a publication that companies like MicroStrategy are acquiring Bitcoin to drive the price higher.

He added that retail traders construed the move from these large institutions as an indication to hold. More buyers are now collateralizing Bitcoin at DeFi pools to earn rewards. This points out that the available supply of Bitcoin is gradually dropping.

News Source

Advertisement
Advertisement

Copyright © ELEVENEWS