Bitcoin Recovers Above $50,000 After Square Investment

Bitcoin stabilised near $50,000 on Wednesday following news that payments business Square, headed by Twitter co-founder Jack Dorsey, purchased a further $170 million worth of the cryptocurrency.

In its Q4 earnings report released on Tuesday, Square disclosed that it had bought 3,318 bitcoins for a combined $170 million, following on from a $50 million purchase disclosed last October. Square now has 5% of its total assets invested in Bitcoin.

The price of the virtual currency surged following the report, surging 7.5% to settle around $50,683 by 4 AM EST after hitting $51,369 hours earlier. As has become routine during Bitcoin bull runs, other cryptocurrencies saw surges of their own, with Ethereum and XRP climbing 11.3% and 7.4% respectively.

"Square believes that cryptocurrency is an instrument of economic empowerment, providing a way for individuals to participate in a global monetary system and secure their own financial future," Square said in a statement. The firm stated that it plans to continually assess its aggregate investment in Bitcoin relative its other investments.

Square CEO Jack Dorsey is a well-known proponent of Bitcoin, believing that the token will eventually become the “single currency” of the internet.

Shortly after reaching record highs above $58,000, and only days after crossing the $50,000 milestone, comments from US Treasury Secretary Janet Yellen questioning the efficiency and value of cryptocurrency caused a widespread sell-off across the crypto industry. Bitcoin’s own price dropped 12.5%, falling back under the $50,000 mark.

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Bitcoin’s 400% rally since October has coincided with attention from prominent companies including Tesla, PayPal and BNY Mellon, all of which have announced plans to accept Bitcoin from clients in the future.

Bitcoin is the most valuable cryptocurrency in the world, with a value making up 60% that of the global crypto market.