Jack Dorsey Block Leads Bitcoin Sentiment Analyst Downgrade

  • As of this writing, Bitcoin is trading at $19,083.56.

SQ, a payment processing protocol operated by Twitter co-founder and crypto evangelist Jack Dorsey, has been downgraded to neutral from buy by investment banks who cited “user fatigue” .

On Tuesday, September 20, an analyst, Dan Dolev, pointed out in his note to a client that Cash App penetration among Americans aged 18-45 is expected to increase by just 500 basis points in 2022, which lags behind the 800 to 900 basis points observed annually over the previous three years.

Dolev also noted that “Bitcoin was only about 5% of gross profit in the first half of 2022, but captured a higher percentage of management attention. Fixing blocks with bitcoin harms stock performance and distracts from the company’s performance platform.

Dolev reduced its target price from $125 to $57. in early September, Evercore ISI lowered its rating on Block from outperforming to underperforming. In addition, in July, Macquarie also reduced its stock.

“After years of being rightfully considered the most innovative name in payments, we believe that user fatigue, flow capping, loss of best selling point [point-of-sale] status, and BNPL [buy-now-pay-later] poor executions block the growth of SQ.

According to data from CoinMarketCap, as of this writing, Bitcoin is trading at $19,083.56. The global crypto market capitalization is approximately $943.56 billion, with a total trading volume for the past 24 hours of approximately $79,922,867,435.

However, it has been hovering around the $20,000 mark since mid-June this year. But today, more than half of the holders still have unrealized net profits. Long-term holders keep their Bitcoin and withdraw it from liquid exchanges to store it in storage.

Only 40% of holders were underwater even in March when bitcoin’s price fell sharply from its highs in November and January and was facing strong opposition.

American entrepreneur and business executive Michael Saylor doesn’t seem bothered by the continuation of the crypto winter. After the massive decline and volatility in the market, he is confident that bitcoin will reach its all-time high of $69,000 within the next four years.

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