Following Square’s Testing Report, Bitcoin’s Price Nears $8000
Bitcoin has become stronger following the report of Jack Dorsey’s payments company Square Inc. (SQ.N). The cash payment app was involved in testing support for bitcoin which has certainly affected the price of the cryptocurrency, which edged closer to $8000 and posted a fresh all-time high at $7997.00 on November 17.
At the beginning of the November, the cryptocurrency smashed through $7000 and climbed to record high to $7888 on November 8. But over the following weekend, the price fell to $5555, subsequent to the SegWit2x cancellation.
A Square spokesperson declared “We’re always listening to our customers and we’ve found that they are interested in using the Cash app to buy bitcoin. We’re exploring how Square can make this experience faster and easier, and have rolled out this feature to a small number of Cash app customers. We believe cryptocurrency can greatly impact the ability of individuals to participate in the global financial system and we’re excited to learn more here.”
Moreover, Credit Suisse analysts described “how bitcoin buying option could help the stock,” sending Square up as much as five percent in the markets. The chart below shows the rise of the payment company’s stock since November 8.
Square tested bitcoin trading functionality within the Cash app during early November. Consequently, a report has been published that states how a bitcoin buying option could help the stock. One Wall Street analyst believes the test of bitcoin functionality will bring positive things for Square’s stock down the line, as it adds to the company’s reputation for innovation.
Evercore ISI analyst Rayna Kumar stated:
“We believe Square could generate revenue growth of 40 percent and 35 percent in 2018 and 2019, respectively, similar to the 41 percent we estimate for 2017. Following our meeting Wednesday with CFO Sarah Friar, we are upgrading Square to outperform. Square’s introduction of bitcoin on Square Cash reflects its ability to innovate.”
However, in the short-term, the company’s stock is not anticipated to be boosted by the experimental phase of bitcoin adoption. You can see for yourself Square’s app in action here.
According to CryptoCompare, in addition to Japan which accounts for around 56 percent of bitcoin trades, the US dollar share of bitcoin trading counts for approximately 25 percent. However, after the SegWit2x fork cancellation, bitcoin cash surged while ether was temporarily pushed into third place by market cap.
However, the wild fluctuations in the cryptocurrency market over the past week or so has adversely affected the price of other cryptocurrencies including Bitcoin Cash, which is now trading near $1000. According to Alex Sunnarborg, the founding partner of Tetras Capital “A lot of the recent volatility has been caused by the recent narrative and events surrounding Bitcoin and Bitcoin cash and the record-setting exchange trading volume between the two amongst large investors, miners, and retail investors in Asia.”