Yerevan (CoinChapter.com) — Bitcoin (BTC) could renew its bullish rally and possibly hit $100,000, after NEXON LTD, the world’s leading video game publisher based in South Korea has announced the purchase of 1,717 BTC, which was equivalent to approximately $100 million at the time of the deal.
This investment represents 2% of Nexon’s total cash which, according to Owen Mahoney, the President and the Chief Executive of Nexon, reflects the company’s disciplined strategy for protecting shareholders’ value and also to maintain the purchasing power of its cash assets.
“In the current economic environment, we believe bitcoin offers long-term stability and liquidity while maintaining the value of our cash for future investments.”
Mahoney added.
Why Bitcoin?
Nexon’s move of investing in BTC mirrors the prior investments of companies like Tesla and MicroStrategy.
Tesla, the electric car giant, purchased $1.5 billion worth of bitcoin back in Feb 2021. This news alone propelled BTC price by 10%. Tesla’s decision to accept bitcoin as payment for their cars also brought significant gains to the company itself. Not to mention Tesla’s shareholders and anyone who chose to invest in bitcoin at the time.
Nasdaq-listed business intelligence firm MicroStrategy also went on a bitcoin buying spree to offset risks associated with the US dollar devaluation. The company’s most recent bitcoin top-up was on April 5, 2021, wherein it bought 253 BTC for $15 million. It nows owns 91,579 BTC, roughly worth $5 billion.
Michael Saylor, the CEO of MicroStrategy, confessed his “profound unease” about central banks propping up economies with “cheap money” while speaking to Time. The excessive quantitative easing by the Federal Reserve devalued the US dollar by up to 13.5 percent from its mid-March high. Saylor admitted that his lack of trust in the mainstream economy and how it’s run by central banks brought him to bitcoin.
He called the cryptocurrency “digital gold”.
Favorable Economic Climate
There are many indications to support the inverse correlation between the strength of USD against other currencies (USD index – DXY) and BTC price.
Some experts forecast a tough year for the USD, as its volatility continues to rise after the pandemic. DXY has been declining since the beginning of April. That could send the bitcoin prices upward, especially as more investors like Nexon tend to put their trust in decentralized currency rather than the Federal Reserve.
According to Damir Tokic, his global micro indicators show a further money supply rise. This rise indicates an upcoming inflation rate soaring even higher.
Stephen Roach, a contributor for Bloomberg.com, predicted further instability for USD in 2021, stating:
There were three main reasons why I argued the dollar would fall: 1) a sharp widening in the U.S. current-account deficit, 2) the rise of the euro, and 3) a Federal Reserve that would do little in response to any weakness in the greenback. I have a greater conviction on the weak-dollar call today than I did six months ago on each of these counts.
Meanwhile, Bitcoin had been in a bearish phase since it briefly hit $64,900 on April 14. It is currently trading at $54,352 and is expected to rise, considering the recent institutional interest.
Lilit is a Yerevan-based Markets writer, skilled in 3 languages, and interested in writing about the tech world, trading, art, and science. She also has a background in psychology and marketing, which helps deliver the right message to the target audience.
LAGOS (CoinChapter.com) — Monday’s trading session has marked a return to the bears for Bitcoin and other top cryptocurrencies after...
Our Partners
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
Cookie
Duration
Description
cookielawinfo-checbox-analytics
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checbox-functional
11 months
The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checbox-others
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-necessary
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-performance
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy
11 months
The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.