News of the year?
After PayPal had announced the migration of crypto currencies on yesterday’s Wednesday, the BTC course did not know any more stop. In a rush the cops pushed the Nr.1 crypto currency to a new yearly high, from which also the alternative assets could profit. Thus Ethereum climbed above the important 400 USD mark on Thursday and Chainlink stormed to 6th position in the crypto charts with a daily gain of 10.56%. We take a look at the current market situation.
PayPal enters the crypto business
With about 344 million users PayPal is one of the largest payment service providers worldwide. The listed company drew attention to itself a few months ago when it terminated its cooperation with Calibra. As a result, many experts assumed that the FinTech giant would turn its back on crypto space. No way! In a statement on the PayPal website, the big player comments on the decision as follows:
” The migration toward digital payments and digital representations of value continues to accelerate, driven by the COVID-19 pandemic and the increased interest in digital currencies from central banks and consumers. PayPal Holdings, Inc. (NASDAQ: PYPL) today announced the launch of a new service enabling its customers to buy, hold and sell cryptocurrency directly from their PayPal account, and signaled its plans to significantly increase cryptocurrency’s utility by making it available as a funding source for purchases at its 26 million merchants worldwide.“
Starting signal for a new price rally?
When the PayPal messages flooded the crypto space on Wednesday, the BTC share price could not stop. In passing, the cops pulverized stubborn resistance and celebrated a new annual high. Indeed, the migration of crypto currencies could be accompanied by increasing adaptation. Investors still shy away from buying crypto assets, as they consider crypto stock exchanges to be insecure trading places. In the past 6 weeks alone, negative headlines from established exchanges such as OKEx, BitMex and KuCoin caused an enormous loss of confidence, which was reflected in the price of the leading crypto currency. In general there are not only positive opinions about the “news of the year”.
High fees, centralization and few crypto currencies
A centralized payment service provider allows the purchase of decentralized crypto assets and charges high fees for this. At first glance, this combination seems relatively inconsistent. And indeed, PayPal initially only wants to support BTC, ETH, LTC and BCH. These crypto currencies can be bought, sold or held in a PayPal wallet in the future. However payouts in external Krypto Wallets are not possible at the beginning. Therefore, users must exchange their coins for FIAT currencies on the platform. Thus PayPal keeps the reins in the hand.
Bitcoin course moont on Thursday
The Bitcoin bulls continue the upward trend of the previous day. At the time of this article, the No.1 crypto currency is trading at a rate of 13025 USD, which corresponds to a daily increase of 1.5%. At the same time, a market cap of approximately USD 400 billion illustrates the great interest of investors. The PayPal news penetrates into the mainstream and the “digital gold” performs in the coronavirus crisis on another level. The current bull run could also be accompanied by an encapsulation from the traditional markets. From a bullish perspective, the next resistances are now at USD 13200 and USD 13500. On Thursday night, the bulls already reached a new annual high of $13158 USD. In these hours, the showdown at the 13000 USD mark will take place. Should this barrier mutate into a new support area, a fast advance into the USD 14000 range is even conceivable.