Jack Dorsey, the founder of Twitter, has shown a strong commitment to investing in Bitcoin. He plans to strengthen his investment portfolio through continuous Bitcoin purchases.
According to the industry on the 9th, Dorsey revealed plans to buy Bitcoin every month through his fintech company, Block, using a Dollar-Cost Averaging (DCA) strategy. This move reflects his strong confidence in Bitcoin, which has recently been on a sharp rise, analysts say.
Looking at actual CoinMarketCap data, the price of Bitcoin increased by 107% last year alone, and the market capitalization reached $1.16 trillion. Moreover, Bitcoin’s RSI (Relative Strength Index) and MACD (Moving Average Convergence Divergence) signals are showing a buying signal as they trade above the 100-day and 200-day EMA (Exponential Moving Average). Experts predict that the price of Bitcoin will reach $70,710 within the second quarter of this year.
Block purchased $220 million worth of Bitcoin during the fourth quarter of 2020 and the first quarter of 2021. As of March 31 this year, Block holds 8,038 Bitcoins, which is equivalent to $573 million.
In the first quarter of this year, Block recorded a total profit of $80.1 million from Bitcoin through its Cash App customer sales. This is an increase of about 60% compared to the same period last year.
Meanwhile, Block launched its Bitcoin wallet, Bitkey, in December last year. In April, they announced that they are building a “complete Bitcoin mining system” to alleviate the difficulties faced by miners after Bitcoin halving.
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