Block of Jack Dorsey Draws Analyst Downgrade on Bitcoin Sentiment

While writing this article Bitcoin is trading at $19,083.56.

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

On Tuesday 20th, September, An analyst, Dan Dolev, underlined in his note to a client that Cash App’s penetration among 18-45-year-old Americans is likely to rise by just 500 basis points in 2022, which lags the 800-900 basis points seen annually over the previous three years.

Dolev also noted that “bitcoin accounted for only about 5% of gross profit in H1 2022 but captured a higher percentage of management focus. Block fixation with bitcoin hurts the stock performance and takes away attention on the company performance platform.”

Dolev decreased his target price from $125 to $57. at the beginning of September, Evercore ISI decreased its rating on Block from outperform to underperform. Moreover, in July, Macquarie also decreased its stock.

“After years of rightfully being deemed the most innovative name in payments, we believe user fatigue, plateauing inflows, loss of the best-of-breed POS [point-of-sale] status, and BNPL [buy-now-pay-later] misexecution are blocking SQ’s growth.”

According to the data from CoinMarketCap, while writing this, Bitcoin is trading at $19,083.56. The global crypto market cap is around $943.56B, with a total trading volume of the last 24 hours is around $79,922,867,435.

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

Only 40% of holders were underwater even in March when the price of bitcoin had sharply fallen from its highs in November and January and was up against strong opposition.

The American entrepreneur and business executive Michael Saylor looks unbothered by the continuing crypto winter. After the massive decline and volatility in the market, he trusts bitcoin will touch its all-time high of $69,000 in the coming four years.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing