Bitcoin Sets New 2020 High as PayPal Announces Crypto Adoption
The Bitcoin (BTC) price is making a move towards the $13,000 price mark buoyed by the news of PayPal allowing crypto transactions on its platform.
Bitcoin had been trading in a tight-range at the $11,540 region as downward pressure from multiple sell walls at $12,000 preventing the top-ranked crypto from previously setting a new 2020 high.
PayPal Adopts Crypto
According to Reuters, PayPal is the latest mainstream finance company to adopt cryptocurrencies. The payment giants announced on Wednesday (October 21, 2020) that its customers will from early 2021 be able to transact in cryptos.
PayPal’s crypto adoption reportedly covers buying, selling, storing, and payments for goods and services. The latter feature potentially means virtual currency adoption exposure to over 26 million merchants across the globe.
U.S. PayPal holders will reportedly be the first to enjoy the new feature with the integration reportedly set to happen in the next few weeks. Subsequently, the payment giant plans to expand the service to Venmo and international users before the end of Q2 2021.
Commenting on its committment to increased digital currency adoption, PayPal CEO Dan Schulman remarked:
“We are working with central banks and thinking of all forms of digital currencies and how PayPal can play a role”
PayPal’s decision could also improve global crypto adoption with the novel currency market now being brough closer to 346 million users around the world. Given the volatility associated with cryptocurrencies in general, PayPal crypto transactions will be settled in fiat currencies.
As part of the crypto adoption plan, PayPal has partnered with stablecoin issuer Paxos. PayPal has also received a conditional BitLicense from the New York State Department of Financial Services (NYDFS) allowing the company to offer cryptocurrency purchasing services to its customers for “coins” like Bitcoin, Ether (ETH), Bitcoin Cash (BCH), and Litecoin (LTC).
The PayPal news is also the latest in a series of significant crypto adoption news over the last few weeks and months. As previously reported by BTCManager, over 101 million users across the world have entered the crypto market in 2020 alone. Wall Street firms are even beginning to adopt Bitcoin as a treasury asset.
Bitcoin Soars on PayPal Adoption News
The news of PayPal adopting cryptos has catapulted the BTC price by over $1,000. Bitcoin — the top-ranked cryptocurrency by market capitalization — is now up more than 7 percent over the last 24-hour trading period.
Wednesday’s breakout has also seen Bitcoin set a new 2020 price high and what the bulls will be hoping is an end to the sideways accumulation of the last few months. If the current bullish advance survives the downward pressure from sell wall at the $12,000 price mark, then an assault on the multi-year resistance at $13,800 might be feasible.
Beyond $13,800, the consensus is that Bitcoin will have little resistance in regaining the $19,800 all-time high (ATH).