Lately, the Bitcoin-friendly Cash App, Square’s flagship product, has been all the rage, for American cryptocurrency and digital asset ecosystem. The company’s financial report has divulged that BTC sales on the application have broken new records Q-O-Q, despite the bear market.
Square divulged its 2019 Q1 earnings report, on Tuesday. BTC investors didn’t comprehend notice, while the fintech startup’s shares, trading under the SQ ticker, collapsed by six percent during the after-hours trading session as a consequence of the weaker-than-anticipated payment volume.
It is to be noted that Square, sold $65.5 million worth of Bitcoin in the 1st three months of the fiscal year 2019, as per the report. Interestingly, this came in conjunction with a rebound in virtual currency prices. During Quarter four of 2018, around $52 million worth of the cryptocurrency was supposedly sold. Interestingly, the sales were quite less than $50 million, in the quarters preceding that. These statistics signify that despite the grasp that bears have on the market, BTC volume on Square has surged significantly.
Furthermore, Ben Davenport of BitGo notes that this signifies that Square’s users in and of themselves are absorbing more than ten percent of all BTC mined day in and day out. And as ARK Invest’s resident crypto asset analyst, Yassine Elmandrja notes that if Bitcoin sales maintain present escalation rates, by the next halving event, two Bitcoin will be purchased on Square Cash for every one mined. As per him, a single application could soon void all of the natural selling pressure that BTC faces every day, in other terminology.
It is to be noted that the demographics of Cash App are unknown. Specifically, the data about those who use the virtual asset side of the platform is unknown. However, this amplified Bitcoin volume may signal that retail interest is getting back to this ecosystem.