The digital currency plunged to as low as $45,000 on Tuesday. The dip followed Elon Musk’s comments on Bitcoin and Ethereum price. Musk said that the price of the digital currencies “seem high” resulting in a 17% downturn to Bitcoin.
Ironically, Musk’s Tesla (NASDAQ: TSLA) invested about $1.5 billion Bitcoin earlier in January. The billionaire’s comments not only resulted in Bitcoin losing its value; even Tesla’s shares plunged because of the Bitcoin price plummet.
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On the other hand, Square said Tuesday that it bought 3,318 Bitcoin at the price of $170 million representing about 5% of the company’s total marketable securities, cash, and cash equivalents. In October, Square purchased 4,709 bitcoins for $50 million.
“The investment is part of Square’s ongoing commitment to bitcoin, and the company plans to assess its aggregate investment in bitcoin relative to its other investments on an ongoing basis,” the company said.
Meanwhile, analysts argued that digital currencies highly volatile market is something normal for a young market.
