Bitcoin rises in price to $11,000 after the company of the Twitter CEO bought BTC for $50 million

Twitter CEO’s company buys $50 million worth of BTC

Square, a company specializing in solutions for receiving and processing electronic payments, announced the purchase of 4,709 BTC (about $ 50 million).

Firm co-founder Jack Dorsey, also known as the Twitter CEO, is a longtime fan of cryptocurrency. The press release notes that the investment accounted for approximately 1% of Square’s assets. The company noted the ideological significance of investing in bitcoin:

“Square believes that cryptocurrency is an instrument of economic empowerment and provides a way for the world to participate in a global monetary system, which aligns with the company’s purpose.”

In August, MicroStrategy became the first publicly traded firm to invest in bitcoin. While MicroStrategy itself is a large company with a market cap of $1.5 billion, it pales in comparison to Square, which has a market cap of $ 81 billion.

Bitcoin rises in price to $11,000

The price of the first cryptocurrency exceeded $11,000 for the first time in three weeks.

Since the beginning of October, the price has been moving in a narrow range of $10,390–10,820. After the news that Square acquired 4,709 BTC, the price rose by 3.2% in a few hours. In addition, on October 8, the bitcoin hashrate set a new record at around 170 EH/s — in 4 months, the indicator grew by 40%.

Analyst Omkar Godbowl notes that the rate remained “relatively stable” and did not drop below $10,000, despite news of the KuCoin exchange hacking, the indictment of BitMEX and a statement by US President Donald Trump to end negotiations on a new financial stimulus package.

China to distribute 10 million digital yuan

The PRC authorities continue their policy of popularizing the digital yuan among the population.

The major Chinese city of Shenzhen plans to distribute a total of 10 million digital yuan (about $1.5 million). The distribution will be carried out using a lottery, 50,000 people will become winners, each of whom will receive 200 stablecoins. Shenzhen residents can apply online to participate in the draw on October 9th.

The money received can be spent in any of the 3,389 stores in Luohu District of Shenzhen. The digital yuan is currently being tested in nine cities in the country, including Shenzhen, Guangzhou and Hong Kong.