Is the break in Bitcoin (CRYPTO: BTC) finally over?
It’s no longer a secret – the price of the world’s leading cryptocurrency has fallen 46% in recent months from its highs in early May. But on Friday, Bitcoin’s price finally seemed to show signs of stabilizing, rising about 0.2% by 10:40 a.m. EDT.
Not all cryptocurrencies are so lucky, however. Dogecoin (CRYPTO: DOGE) Owners in particular are sitting on a 5% loss today, according to the latest data from Coin base – and the difference between what just happened to Bitcoin and what is still happening to Dogecoin can only be due to one factor: square (NYSE: SQ).
Cryptocurrencies in general were hit by a sell-off yesterday, if you recall, after Dogecoin co-creator Jackson Palmer shot a broadside in the industry Twitter yesterday.
Palmer has ripped the cryptocurrency as a whole (a concept he helped develop) as “seedy” and full of “corruption, fraud, inequality”. Far from being an investment opportunity for the little guy or a safe and reliable store of value without government oversight, Palmer says cryptocurrencies have evolved into a means “to augment wealth”. [of] the existing centralized financial system “- and a system manipulated by” bought influencers and pay-for-play media “.
I am often asked whether I am “going back to cryptocurrency” or regularly sharing my thoughts on the subject again. My answer is a wholeheartedly no, but in order not to repeat myself, I think it might be worthwhile to briefly explain here why …
– Jackson Palmer (@ummjackson) July 14, 2021
Fighting words, indeed. No wonder investors have suddenly become suspicious of investing in crypto.
Even today, more than 24 hours after the tweet thread, most of the cryptocurrency prices tracked on Coinbase are suffering from the effects of Palmer’s words. Bitcoin, however, is dodging the bullet thanks to an announcement from Square (whose shares are up nearly 3% this morning and are still up 1%).
The announcement also appeared on Twitter, by the way, in which Square says it is creating “a new company”, the name of which has yet to be determined, that will offer “non-regulatory, license-free and decentralized financial services.” centered on bitcoin.
Square is launching a new company (affiliated with Seller, Cash App, and Tidal) that will focus on building an open developer platform with the sole goal of making it easier to create non-custodial, license-free, and decentralized financial services. Our main focus is on #Bitcoin. His name is TBD.
– jack (@jack) July 15, 2021
Unfortunately, we don’t have any further details on Square’s new service. But the very prospect of what could come seems sufficient to get Bitcoin out of the garbage dumps – and to propel Square shares up as well.
This article represents the opinion of the author who may disagree with the “official” referral position of a premium advisory service from the Motley Fool. We are colorful! Questioning an investment thesis – even one of our own – helps us all think critically about investing and make decisions that will help us get smarter, happier, and richer.