Be Careful When Selling BTC for Under $50k, Adam Back Warns

Bitcoin (BTC) experienced a correction of more than 20% after reaching its all-time high of $58,330 on February 21. Still, institutional investors continue to buy the largest digital currency.

Adam Back, co-founder and CEO of blockchain technologies provider Blockstream, warned those selling Bitcoin for under $50,000 in his February 24 post.

Commenting on Square’s recent Bitcoin investment of $170 million, Back stated:

Worth noting that Square bought in the last 7days. Either before $58k or after, or a mix of peak & dip buying average. Keep that in mind before selling BTC under $50k: both institutional and retail ETF buying up for cold storage.

Financial services giant Square announced on February 23 that it had purchased 3,318 Bitcoins worth $170 million. After this investment, the company invested 5% of its total reserve in Bitcoin.

The business intelligence giant MicroStrategy, which triggered the influx of institutional investors in the industry by investing $250 million in Bitcoin in August 2020, bought $1 billion worth of BTC on February 24  and raised its Bitcoin savings to over 90,000. MicroStrategy bought Bitcoin at an average of $52,765.

In the futures market, where $5.6 billion worth of contracts were liquidated in just two days after Bitcoin’s sudden price drop, investors seem unaffected by the correction. After the BTC price bottomed, many investors took a long position again.

Bitcoin, which has gained 3.5% in the last 24 hours, is trading at around $50.691 on Bitstamp as of the time of writing this article.

If you have any questions and comments on Bitcoin today, use the form below to reply.

© MarkStevenson for Commodity Blog, 2021. | Permalink | No comment |
Published under: Bitcoin

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