Bitcoin Rallies Above $11,300 Fueled By Latest News From Square

The price of Bitcoin rallies above $11,300 in the crypto news today, mostly influenced by the latest news from Square which showed Jack Dorsey (the owner of Square and Twitter) investing $50 million in the flagship cryptocurrency.

The news was well accepted in the community, and even though BTC was outperformed by several coins in the top 10 by market cap, traders knew that as Bitcoin rallies above new levels, it is a solid buy and a good thing that it has been pushed up above the critical $11,000 mark.

Today, @Square announced that it has purchased $50M in bitcoin. Square believes cryptocurrency is an instrument of economic empowerment and provides a way to participate in a global monetary system, which aligns with the company’s purpose. For more, visit https://t.co/HPhSMfVgac.

— Square IR (@SquareIR) October 8, 2020

Going up by more than 4% in the past 24 hours, Bitcoin is on fire. In the past 7 days, it has gone up by less than 10% which brought it to the current price of $11,380 this morning. The price is near its highest point recorded in the last 30 days of $11,142, but is still far from the highest price this year of $12,382.

According to Coinmetrics, the latest Bitcoin news show a BTC performance that is “remarkable” despite a number of factors that could have worked against it. As the analysts said, they “like what they are seeing on-chain from a fundamental growth perspective.”

1/9 Bitcoin has performed remarkably these past few weeks despite:
-Most of DeFi falling 50-80%
-CFTC charging BitMEX
-POTUS contracting Covid
-Delayed stimulus talks
-FCA announcing a derivative ban for retail

Why? Let’s see what we can find on-chain

— CoinMetrics.io (@coinmetrics) October 9, 2020

The firm also found that the number of Bitcoin whales continues to increase, which indicates a lot of positive expectations for the future of Bitcoin. The HODL activity increased, too, and the BTC transfer count is growing steadily. Scarcity may be higher than expected as only 6.8 million of BTC (or 36.7% of the total supply) have been active in the last year.

“Bitcoin’s Realized Cap has been steadily increasing just as it did before the 2017 bull market took off. If it continues as it did in 2017, 2021 should be an interesting year,” Coin Metrics said.

Meanwhile, analysts like Willy Woo commented that as Bitcoin rallies above $11,300, “we are seeing new HODLers on the market” and that “many other unannounced investors have been scooping coins off the market.”

Square's buy of 4,709 BTC and Microstrategy's 38,250 BTC is the tip of the iceberg. The last 8 months has seen a reduction of 250,000 BTC in the speculative stockpile sitting on exchanges signalling many other *unannounced* investors have been scooping coins off the market. https://t.co/OwsQvvG2eS

— Willy Woo (@woonomic) October 9, 2020

The global crypto market cap is at $361 billion, which represents a 4.67% increase over the last day, mostly fueled by coins such as Bitcon, Ethereum, Ripple, Bitcoin Cash and Binance Coin – which are all in the green today.