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Bitcoin Rebounds, Soaring above $50,000 after Square’s Unexpected Purchase

Bitcoin bounced back above the $50,000 rate

Major Takeaways

  • Bitcoin bounced back above the $50,000 rate on Wednesday, after a total sell-off in the beginning of the week.
  • Square announced on Tuesday that it had purchased $170 million worth of bitcoin.
  • It’s rather typical for crypto assets in general and for bitcoin in particular to undergo crazy sessions of ups and downs.

Bitcoin’s price bounced back during Wednesday’s trading session, following a crazy sell-off earlier this week. Now the #1 crypto asset’s value is trending above $50,000 again as Square, an American financial services, merchant services aggregator, and mobile payment company based in San Francisco, California announced it had bought $170 million worth of the digital asset.

At 4 a.m. ET, the world’s most popular crypto coin bounced 7.5% to a price of $50,683, according to data from several well-known exchanges. Next, the crypto coin rallied as high as $51,369.

Other digital coins followed the trend, getting additional boost. Thus, ether and XRP enjoyed 11.3% and 7.4% growth respectively. In fact, altcoins, or alternative to bitcoin cryptocurrencies tend to see gains in tandem with bitcoin in times of bitcoin strength.

On Tuesday, Square shared it had purchased 3,318 bitcoins at an average price of approximately $51,235. The fintech company, managed by Twitter CEO Jack Dorsey, admitted that bitcoin now represents around 5% of its total assets.

In fact, It’s not the first time Square has decided to revive its portfolio and invest in bitcoin — the fintech company bought $50 million worth of the #1 cryptocurrency a year ago. Jack Dorsey thus proved to remain one of bitcoin’s most famous supporters having once noted he believes bitcoin will eventually become the “single currency” of the internet.

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