In this photo the value of bitcoin virtual crypto currency is displayed on the phone screen.
STR | Nourphoto | Getty Images
The price of Bitcoin bounced back on Wednesday after a sharp sell-off, with Square announcing that it had bought pt 170 million worth of cryptocurrencies.
At 4 a.m. ET, the world’s most valuable digital coin rose 7.5% to 50 50,683, according to Coin Matrix data. Cryptocurrency hit a high of 51,369 a few hours ago.
Other cryptocurrencies also gained momentum, with Ether and XRP rising 11.3% and 7.4%, respectively. The so-called Velcoins, or alternative cryptocurrencies, often climb at the time of Bitcoin’s power.
On Tuesday, Square announced it had bought 3,318 bitcoins at an average price of $ 51,235. Bitcoin now represents about 5% of its total assets, said Fintech, a company run by Twitter CEO Jack Dorsey.
This is not the first time Square has invested in Bitcoin – the firm bought 50 50 million worth of digital currency last year. Dorsey Vaccine is one of the most well-known supporters of Bitcoin, once saying he believes it will eventually become the “single currency” of the Internet.
Bitcoin had a rough start to the week, dropping from a record high of, 58,356 on Sunday to a low of, 45,501 on Tuesday. It’s not uncommon for Bitcoin to go through a wild torment of volatility – digital tokens skillfully reached nearly 20,000 20,000 in 2017, before entering the bear market the following year.
Bitcoin is still more than 70% year-to-date and more than 400% in the last 12 months. The spectacular rally of crypto assets has caught everyone’s attention, from Tesla CEO Elon Musk to US Treasury Secretary Janet Yellen.
Earlier this week, Yellen called Bitcoin a “highly inefficient” means of payment and warned about its use in illegal activity.
“It’s a very speculative asset and … I think people should be aware that it can be extremely volatile,” the former Federal Reserve chairman told the New York Times Deal Book Conference. “I’m worried about the potential losses that investors may suffer.”
Musk, meanwhile, has emerged as a believer in Bitcoin. His electric car company recently invested 1.5 1.5 billion in corporate cash in cryptocurrency, and the billionaire tech entrepreneur said he believes it could be “on the verge of gaining widespread acceptance” among traditional financial services companies.
But Musk also suggested that Bitcoin’s current price levels may be inadvisable, tweeting over the weekend that he thinks the prices of bitcoin and rival token ether “seem high.”