Square shares drop after a critical tweet by Citron Research calls Bitcoin [BTC] trading strategy ‘nonsense’

Shares of mobile payment company Square fell after short-seller Andrew Left’s Citron Research tweeted that Square’s BTC trading has been ‘insignificant’. Its price dropped by 3.8 percent to $45.76 per share. Even though it recovered most of its losses, it closed at 0.48 percent, a value lower than the beginning of the day.

Square was founded by Jack Dorsey, CEO of Twitter. In January, Square launched Bitcoin trading through its Square Cash app. Since then, there haven’t been any significant changes in the stock price.

In an interview with CNBC, Dan Dolev, a research analyst at Nomura Instinet said:

“I think the bitcoin impact will be material long term,”

He believed that launching Bitcoin trading could add about 10 percent to adjust earning and had set the price target to $65.

Earlier, Jack Dorsey stated that Bitcoin would become world’s single currency in the coming 10 years. He is now of the opinion that Bitcoin does not have the capacity to become an efficient source for exchange because of the defects.

An asset management executive commented:

“My bet is $BTC will fuel square’s growth in ways Citron can’t imagine.”

Citron tweeted:

“$SQ Short term tgt $30 started as innovative pymt co. – now just another processor. 15x rev growing slower than $FB. Collection of yawn businesses. WallSt drunk on Bitcoin nonsense, SQ-Cash to BTC trading has been insignificant. Even w/ hyper growth still 40% too rich.”

A market follower commented:

“another brash example of obvious market manipulation by Citron. Congratulations. truly amazing that they act with such impunity.”

Dave, a Twitter user commented:

“Unless this gets some buy volume it’s headed south. Larger volume days are down days. Lower highs and lower lows.”

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