The share value of a Chinese-born photo editing app known as Meitu jumped 14,4% this morning after the popular Chinese company with its beauty-focused app officially said it had bought Bitcoin and Ethereum for a value of 40 million dollars.
According to crypto market experts, this strong demand from the market for the purchase of bitcoin and other cryptocurrencies is largely due to the fact that institutions are coming to this market.
The Chinese tech firm, just late yesterday night, revealed in its most recent statement that it had bought Ether worth $ 22,1 million and Bitcoin worth $ 17,9 million on the 5th. March in a report credited to the Reuters news agency.
Meitu is not the first and it will certainly not be the last
Meitu is just the latest of the international companies to end up in the latest cryptocurrency news for buying digital currency. About a month ago, Tesla revealed that it bought $ 1,5 billion worth of Bitcoin, which increased the price of the world's most popular cryptocurrency by 20%.
Ethereum also posted a strong year-to-date gain, climbing 530%. The annual returns of the cryptocurrency flagship, on the other hand, stand at around 430%.
Meitu said it bought these popular cryptocurrencies as a matter of investment and partly to prepare to enter the blockchain community. Furthermore, it indicated that it had supported this purchase through its existing cash reserves.
Meitu is considering integrating blockchain technologies into its overseas-based businesses, which could include projects on the Ethereum blockchain network.
Banks are also starting to move
Recall that a few days ago, one of the major international banks, Citi had suggested that the flagship crypto-asset could "become the preferred currency for international trade", thanks to its "decentralized design, lack of exchange exposure, money transfer fast (and potentially cheaper), secure payment channels and traceability ".
Market liquidity is shrinking in the flagship Crypto market, as there are less than 4 million BTC in circulation available to upcoming investors, including the likes of Grayscale, Paypal, Microstrategy. MicroStrategy's Michael Saylor bought more Bitcoins to amass stakes from his software company which now owns more than $ 4 billion.
In short, everyone is really moving and above all, large investments are starting to arrive in the sector. Before this is on everyone's lips, the big institutions will have already stocked up on bitcoin. Have you started? You know you can buy too Bitcoin with PayPal? It is really simple and safe. Just read our guide to learn more and start investing.