Payments giant, Square, has become the second listed company after MicroStrategy to buy Bitcoin (BTC). Although Square’s purchase of 4,709 Bitcoin is much smaller than MicroStrategy’s haul of 38,250 Bitcoin, many investors feel that this is a welcome step in the right direction.
The acquisition of cryptocurrency by large listed companies such as Square could possibly inspire other companies to join the crypto bandwagon and it also suggests that Bitcoin’s image as an investment vehicle and store of value have improved.
The growing interest in cryptocurrency is not going unnoticed as several central banks are attempting to make themselves relevant in this digital age with the launch of central bank digital currencies.
Daily cryptocurrency market performance. Source: Coin360
China has been at the forefront in the development of a CBDC. Local news outlets in China also report that the city of Shenzhen is planning to do a public giveaway of 10 million digital yuan to about 50,000 people who will be chosen through a lottery.
China’s progress on the digital yuan has prodded other Asian nations to hasten the development of their own CBDCs. As proof of this, a recent report by the Bank of Japan outlined that the country plans to begin testing its own CBDC sometime in 2021.
The crypto market has reacted positively to all the newsflow, but is this recovery sustainable?
Let’s study the charts of the top 10 cryptocurrencies to find out.
Bitcoin (BTC) broke and closed above the symmetrical triangle and the 50-day simple moving average ($10,855) on Oct. 8. This shows that the uncertainty between the bulls and the bears has resolved to the upside.
BTC/USD daily chart. Source: TradingView
If buyers can sustain the price above the triangle for one more day, the breakout will be considered as valid and