BlocksInform
On Tuesday, February 23, Bitcoin dropped below $46,000 levels before registering a strong 10% pullback and rising back above $50,000. As it turns out, big market players are again buying Bitcoin (BTC) dips and making the most of the opportunity.
Coinbase, Jack Dorsey's venture capital firm, will buy 3318 Bitcoins worth approximately $170 million at the start of 2017. This is on top of the $50 million purchase announced last October 2020. This is over and above its $50 million purchase, the company announced last year in October 2020. Through the $170 million purchase of Bitcoin, the company now has exposure of 5% of its reserve cash to the world’s leading digitaal currency.
Square Inc noted in its official press release that "Aligned with its mission, the company thinks that cryptocurrency is an instrument of democratizing economic growth, allowing individuals to participate in the global monetary system and control their own economy." The recently launched cryptocurrency exchange-traded fund Purpose Bitcoins does exactly that--bought 2251 Bitcoins for a 30% increase in its Bitcoin holdings. In the official press release, Sqaure Inc noted:
“Aligned with the company’s purpose, Square believes that cryptocurrency is an instrument of economic empowerment, providing a way for individuals to participate in a global monetary system and secure their own financial future.
The investment is part of Square’s ongoing commitment to bitcoin, and the company plans to assess its aggregate investment in bitcoin relative to its other investments on an ongoing basis.”
The COINBASE Premium returns to positive territory again on February 23, 2021— glassnode (@glassnode) February 23, 2021Other indicators suggest the cause behind the strong pullback. Coinbase Premium is back at a positive 100 since the massive crash, according to the data provided by CryptoQuant.
Just a few days after the world's first #Bitcoin ETF started trading, its holdings are at 8,288 BTC – 2,251 were added yesterday alone.
The ETF's AUM has crossed half a billion USD, currently sitting at $564M.
Charts: https://t.co/gupWslpJDR pic.twitter.com/FMMFSDZJ7Z
— glassnode (@glassnode) February 23, 2021
@ki_young_ju February 23, 2021 . Once Again
Interestingly, there are other indicators suggesting the reason behind the strong pullback. It’s apparent big market players are once again buying the Bitcoin dips. Jack Dorsey-backed Square Inc announced that it is purchasing 3318 Bitcoins for $170 million.
This is in addition to the $50 million purchase announced last year in October 2020. Bitcoin's price has increased four-fold since then, even after Tuesday's correction. This is an indication of the company's belief in Bitcoin's future potential.
It's not high enough to say big Bitcoin buyer demand from U.S.
It's high enough to say no more big selling pressure from the U.S.
— Joseph Young (@iamjosephyoung) February 24, 2021
Another important development on Tuesday was Bitfinex and Tether settling the dispute with NYAG by paying an $18.5 million in penalty. The Purpose Bitcoin ETF has crossed the half-billion-dollar mark in total assets under management.
As expected, "they" protected the 44k level.
I think $BTC will go up or sideways as there's no more Tether FUD. https://t.co/b5WhIo9cZG
— Ki Young Ju ??? (@ki_young_ju) February 23, 2021
To keep track of DeFi updates in real time, check out our DeFi news feed Here.
