The value of 1 Bitcoin went back above the $50,000 psychological level after Jack Dorsey’s Square revealed that they had purchased 3,318 BTC for $170 million at an average price of $51,236 per coin.
Bitcoin (BTC), the world’s first and biggest cryptocurrency by market capitalization, has entered correction and is back on its feet after climbing above the $50,000 resistance level. The revival in the price of the digital asset follows a major correction the coin carried over from the weekend after topping an all-time high of $58,000.
At the time of writing, Bitcoin is up 7.06% and is exchanging hands at $50,706.81 according to CoinMarketCap. Drawing from the positive correlation the altcoins share with BTC, the top-ranked coins are also seeing recoveries after suffering a similar price dump.
Ethereum (ETH) is up 14.54% over the past 24 hours to $1,684.19, while Binance Coin (BNB) has added 26.68% to $268.22 in its bid to reclaim its all-time high price of $342.88 recorded about 5 days ago.
The troubling price dumps the cryptocurrency industry witnessed since the start of the week can be attributed to the pessimistic view about the potential of Bitcoin as a means of payment expressed by Secretary Treasury, Janet Yellen who noted that BTC is “extremely inefficient.”
“It is a highly speculative asset and … I think people should be aware it can be extremely volatile,” Yellen noted at a New York Times DealBook conference. “I do worry about potential losses that investors can suffer.”
The resounding effect of the statement cost the global cryptocurrency industry about a $400 billion loss in market capitalization.
Bitcoin Correction after Square’s New Acquisition
The value of 1 Bitcoin went back above the $50,000 psychological level after Jack Dorsey’s payment company Square Inc (NYSE: SQ) revealed that it has purchased an additional 3,318 BTC for $170 million at an average price of $51,236 per coin.
The move by Square follows a similar one made by electric automaker Tesla Inc (NASDAQ: TSLA), which purchased $1.5 billion worth of the coin earlier in the month. The cryptocurrency’s past correction was also flagged by Cathie Wood, the founder, and CEO of Ark Investment Management as a healthy one.
Wood said in an interview with Bloomberg that she is “very positive on Bitcoin, very happy to see a healthy correction here.” This comment might have inspired the market bulls to renew their buyup of the premier digital currency, and the ongoing surge being recorded.
The revival in the cryptocurrency industry is perhaps rubbing off on the stock market, with obvious recoveries and upticks. The Dow Jones Industrial Average (INDEXDJX: .DJI) lead the gains of the major indices adding 15.66 points atop a 0.050% to 31,537.35. Amongst the tech stocks recovering after a negative trading day on Tuesday is Tesla. The automaker’s stock is up 3.81% in the pre-market at the time of writing.
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.