Cryptocurrency Analysis

[IFX_Selena]

Square announces $20M loss on Bitcoin investments



While bitcoin continues its decline for more than a month, more and more players are changing their position from plus to minus. For example, Square, which previously invested $220 million in the purchase of "digital gold", said that it no longer plans to buy bitcoin. In its quarterly report, the company said that it suffered a loss of $20 million from the drop in the price of bitcoin to $45,000. "We have no plans for further investment in bitcoin," said Amrita Ahuja, the company's chief financial officer. At the same time, the CEO of the analytical company CryptoQuant, Ki Young Ju, hinted as gently as possible that bitcoin may continue its decline in the near future. According to him, large investors are transferring their coins to cryptocurrency exchanges, "so there may be increased volatility in the near future." In reality, this means that the "whales" come to the exchanges with one goal - to sell their coins. Consequently, the supply of bitcoin on the stock exchanges increases, but the demand is far from a fact. "If you are a long-term investor in bitcoin, then you have no reason to worry. Your portfolio is the same as that of US institutional investors," said Ki Young Ju, and his claim is highly controversial.

Also, bitcoin could be pressured by news from unofficial sources that the activities of the Binance crypto exchange, which is one of the largest and most famous in the world, have been investigated by the US Department of Justice and the US Internal Revenue Service for violations related to money laundering and tax legislation. It is reported that at this time, no charges have been brought against the exchange. A representative of the exchange itself said that they take the legislation very seriously and always cooperate with law enforcement agencies. According to the exchange's director, Changpeng Zhao, they are simply cooperating with law enforcement agencies regarding "bad players."

All this news is called "negative fundamental background". And the more such news comes in, the more difficult it is to count on the resumption of the bullish trend. It is possible that an avalanche-like fall has begun, which will take bitcoin very, very far down. And with it the entire cryptocurrency market.




Paolo Greco
Analytical expert
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