Bitcoin (BTC) has $ 12,000 in the sights again, following Square’s massive purchase of BTC. Bitcoin is entering the balance sheets of a growing number of companies in the United States. Something to arouse optimism among bitcoiners, but these new whales can certainly give a boost to the rise of BTC, without playing the role of leverage necessary to conquer the 100,000 USD.
Bitcoin in the coffers of US companies
8 American companies listed on the stock exchange admitted having converted part of their cash into Bitcoins.
Square recently acquired for $ 50 million in Bitcoin, which represents 1% of the company’s assets.
The market Bitcoin recorded in a few days a significant inflow of liquidity, increasing its market cap to 15 billion dollars.
The course of Bitcoin is also on the rise and has even passed the $ 11,300 mark.
The investment white paper of Square explains that given the uncertain macroeconomic environment and the rapid evolution of cryptocurrencies, the company needed to diversify its portfolio of assets largely denominated in USD.
BTC whales without a strong impact on the market
Crypto figures applaud the arrival of big investors BTC, reinforcing the rank of whales.
Mike Novogratz indicates that the integration of Bitcoin in the balance sheet of companies is now a reality. Novogratz revealed that his company Galaxy held BTC in its assets.
4 other listed companies now have Bitcoins in their assets: MicroStrategy, Cypherphunk Holdings, Riot Blockchain and Grayscale.
It is the same for the 2 exchanges, eToro and Kraken.
Source : Image via Twitter
The economist and trader Alex kruger points out, however, that the impact of adding BTC in the balance sheet of companies, is overestimated.
This cash in Bitcoin serving as an inflation hedge, is not intended to be used or invested, reducing the likelihood of a snowball effect benefiting the markets.
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.
Should we simply create a new account in the companies’ chart of accounts for Bitcoin? Is Bitcoin a currency or a non-current asset? How will the regulatory authorities react to this inflation hedging strategy adopted by American companies? No, the future of BTC is not yet written by institutional investors. Even Satoshi Nakamoto didn’t necessarily foresee the current scenario so, it’s not US companies that can claim to have a sharp enough pen to do so.
Litecoin, welcome in the Silver Age