Gold Investor and longtime Bitcoin critic Peter Schiff has stated that contrary to what investors think, Bitcoin will not register a significant price spike following Square’s $50 million Bitcoin’s holdings’ announcement.
Bitcoin reacted immediately to the news with a significant price spike from around $10,650 to $10,945 but Peter Schiff thinks Square will have little to no significant effect on Bitcoin’s price.
“Bitcoin spiked 4% on news that Square invested $50 million (1% of total assets) into #Bitcoin. But that buying has already taken place. Speculators are betting the announcement will attract new buyers. The real news is Square’s buying failed to push Bitcoin above its 2019 high.”
Bitcoin reached a 2019 high of $11,966-$12,939 from July 10 – August 8, 2019, according to data by CoinMarketCap, a level that’s been breached severally but only temporarily between August and September 2020.
Peter Schiff: Square Won’t Inspire Publicly Traded Companies To Invest In BTC
Peter Schiff said that even though Square is a publicly-traded company, the news is not a break in the current trend since Twitter and Square’s CEO Jack Dorsey is a long-time Bitcoin supporter. Therefore it is highly unlikely that more companies will be rushing to invest in Bitcoin as many traders expect.
“They won’t @jack has been a vocal #Bitcoin fan for years. He is hardly a new convert. I don’t see many other companies following his lead.”
Data from Bitcoin Treasuries show that Square is now the fourth-largest publicly-traded company to hold Bitcoin (4,709 BTC) after Galaxy Digital holdings (16,651 BTC), MicroStrategy (38,250 BTC), and Grayscale Bitcoin Trust (449,596 BTC).
The data also shows that Square’s 50 million investment has grown to $52 million since the announcement, following a 4% spike in the price of BTC that broke it from a sideways trading trend between $10,550 and $10,650.
Square Boosts Bitcoin Breach above $11,000
As many investors expected, Bitcoin went ahead to breach the $11,000 resistance level, going as high as $11,102 before a slight adjustment pushed the price down to $11,073 at press time.
However, investors speculate that further upward movement will depend on whether bitcoin will attain and maintain trading between the $11,100-$11,300 resistance level.
Peter Schiff holds the same opinion about fiat inflation as the crypto community but has continued to criticize Bitcoin’s value and only advocating for gold.
However, the crypto community retaliates by stating that Bitcoin is the digital gold and better at being gold than gold since it is easy to buy, store, transfer, more fungible, and with a known total supply.