BTCS stock jumps 44% after announcing first-ever dividend payable in Bitcoin
On Wednesday, Nasdaq Composite logged its biggest daily loss since February last year. But for one of its listed companies, the day turned out to be extremely bullish.
The share value of BTCS Inc. (BTCS), a blockchain technology company, surged nearly 44% to $4.36 at the New York closing bell, thus becoming the third-best performer on Nasdaq after Lixte Biotechnology (LIXT) and Mainz Biomed BV (MYNZ).
In contrast, Nasdaq plunged 3.3% Wednesday, its losses driven primarily by the release of the minutes of the Federal Open Market Committee (FOMC) meeting in mid-December last year. In detail, the minutes revealed the Federal Reserve officials' intention to raise interest rates faster than anticipated.
The Fed scare did not impact BTCS, for it arrived on the same day the company announced "Bividend," the first-ever dividend payable in Bitcoin (BTC) by a Nasdaq-listed company. Excerpts from their press release published Wednesday:
Investors/traders took the announcement as a cue to raise their bids for the BTCS stock, insofar that its value per share jumped to $5.05 on Wednesday, a three-week high. However, the stock price later fell by more than 13.50% amid profit-taking sentiment but overall closed the day in profits.
BTCS dropped by another 8% to $4.01 per share following the New York opening bell on Thursday, this time in sync with Nasdaq, which fell nearly 1%.
The selloff appeared to have accelerated after BTCS tested its 50-day exponential moving average (50-day EMA; the velvet wave in the chart above) near $5.12 as resistance. In a similar fashion, the 20-day EMA (the green wave) attempted to limit BTCS's downside momentum by acting as support.
Related: Bitcoin price drops to $43.7K after Fed minutes re-confirm plans to
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