Last week, Square, co-founded by Jack Dorsey, the CEO of Twitter, purchased $50 million worth of Bitcoin. Yesterday, a release by Stone Ridges, revealed that the company bought $115 million worth of Bitcoin. Stone Ridge Asset Management has been a fan of cryptocurrencies for quite some time. After evolving into the New York Digital Investment Group (NYDIG), the firm started looking into digital assets following the Covid-19 pandemic.
Robert Gutmann, the co-founder of Stone Ridge stated:
“We’ve seen a pretty dramatic acceleration in the count of institutional investors who want to participate in the market since March of this year,” he says. “The macro backdrop against the public health backdrop has caused a lot of people to rethink their portfolio composition.”
After the first purchase from Square, the price of Bitcoin jumped 2.5% within a few hours. So far, Bitcoin hasn’t reacted positively, but that’s mostly because of the strength of the dollar. Bitcoin and the U.S. dollar are inversely correlated, which means that when the dollar goes up, Bitcoin goes down.
BTC dumping will not happen, according to Cryptoquant CEO
According to recent statistics provided by on-chain data provider Cryptoquant, whales are not actively depositing Bitcoin in exchanges. The ‘Exchange Inflow Mean’ isn’t above the danger zone, which has been shown to be a strong indicator of Bitcoin pullbacks.
Back in March, the number of Bitcoin going to exchanges spiked just before the massive black-thursday market crash.
The current price of Bitcoin is $11,341 after a slight rejection from $11,720. The next price target for the bulls is the psychological resistance level at $12,000. On the daily chart, the price of BTC is trading above the 50-SMA and the 100-SMA, after turning both levels into support.
There are almost no red flags for Bitcoin, however, the dollar index does pose a threat to the digital asset. Considering the U.S. presidential election is just weeks away, investors will need to pay close attention to the upcoming events.
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