Federal Reserve Calms Tech And Crypto As Square Buys Bitcoin Dip

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The two-day selloff in crypto and tech markets seemed to end when US Federal Reserve chair Jay Powell took to the Congress floor and told them that he expected:

Hope for a return to more normal conditions.

At the moment that he started speaking, the tech-heavy Nasdaq was down 2.2% but by the end of the session most losses were subdued. Crypto markets, which seem more and more reliant on regulatory comments as well (Treasury Secretary Janet Yellen’s comments on Monday accelerated selling), also bounced back with Bitcoin regaining the $50k mark.

Tech stocks rebounded from an early swoon after Federal Reserve Chairman Jerome Powell pledged anew to support the economic recovery https://t.co/uZ4ZvLZBHc @WSJ aracılığıyla

— Sahilden Borsa (@SahildenBorsa) February 24, 2021

The outlook for improvement in economic markets due to mass COVID-vaccinations combined with a new round of stimulus cheques have taken both crypto and tech markets to incredible highs as of late.

Bitcoin and Ether had gotten to a level where even Tesla CEO Elon Musk claimed that they were both too high. A short but healthy correction was thus a logical outcome. It now remains to be seen whether both tech and crypto have further to fall or if they have found a temporary floor.

Buy the Bitcoin dip at $51k

Meanwhile it looks as if Twitter boss Jack Dorsey wasted no time and instructed his company Square to buy the temporary Bitcoin dip at $51,236 per coin.

The company’s press release read:

Aligned with the company’s purpose, Square believes that cryptocurrency is an instrument of economic empowerment, providing a way for individuals to participate in a global monetary system and secure their own financial future.

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.

Premarket watch $NCTY $RNWK $FTFT $MTC $RCMT

seeing some rebound in #Bitcoin and related stocks pic.twitter.com/5Hyz99yFDC

— Logan Roy (@Ilikeitlike777) February 24, 2021

Fintech company Square surprised tech markets last year when it announced a purchase of $50 million in Bitcoin, then at a price of $10,000 per coin. It has now added another $170 million investment to that.

Square thus firmly believes that following Tesla and Microstrategy’s lead is the way to go. It is clearly buying the Bitcoin dips and hope to improve it’s bottom line further and protect it from dollar deflation as the Fed continues money printing.

mmaxer / Depositphotos.com