The main cryptocurrency in the market, Bitcoin reached 13K after announcements that PayPal will accept operations with cryptocurrencies. Fintech giant PayPal confirmed on Wednesday its long-awaited move into digital assets.
Offering its 346 million users the opportunity to buy, hold and sell Bitcoin, Bitcoin Cash, Ethereum and Litecoin, with the blessing of New York State regulators.
While the cryptosphere acknowledges the optimism of a PayPal-sized company moving into the space, there were also concerns that the new service would not allow bitcoins or other cryptocurrencies to be withdrawn or deposited. Once you buy the coins, they remain in your account until you sell them.
The prices of Bitcoin Cash, Ethereum and Litecoin also rallied on the news, between 8% and 11% in the last 24 hours. Currently, according to our online crypto tool, Bitcoin is priced at USD 12,800, obtaining a growing variation of 4.19% in the last 24 hours.
What do the Bitcoin experts say?
As we mentioned before, yesterday the price of Bitcoin reached 13K. And it even surpassed them to reach $ 13,217. After traders cleared key resistance levels at $ 11,900, $ 12,000, and $ 12,500 in the past 48 hours.
While there are several technical reasons behind this sudden rally. There are three key factors that drove this rise.
- First, the announcement that PayPal will accept cryptocurrencies including BTC undoubtedly boosted its price.
- Two, Bitcoin dominance is on the rise: Last week, Bitcoin outperformed altcoins, decentralized finance (DeFi) tokens, and Ethereum.
- And three, than Bitcoin, shows a bullish structure on longer time frames.
Now, in the short term, some traders expect the market to cool down after such a strong move. Flood, a pseudonymous cryptocurrency futures trader, said:
“I think we are quite overextended in BTC for now. I imagine we will see a bit of a pullback where we will try to find support in the $ 12,200-12,000 range. I’m not saying we can’t go any further, but we can cover ourselves a bit here.
BTC could hit $ 14,000 by year-end
After the big jump of Bitcoin this Wednesday. Cryptocurrency exchanges tracked by blockchain intelligence firm Chainalysis received a total of 106,519 BTC on Wednesday, the highest daily entry since Oct. 2. A similar peak was observed on September 4.
Now, Philip Gradwell, chief economist at Chainalysis, told CoinDesk that “the rebound in foreign exchange inflows indicates that some investors were quick to liquidate their holdings (make a profit) in the rising market.”
And it is that, so far, around 30,000 BTC have been transferred to exchanges, Gradwell said.
He also expressed that this year has been one of great adoption of cryptocurrency and crypto assets in general. So a 2021 full of more widespread adoption is expected. He also concluded by stating that by the end of the year, the leading cryptocurrency by market capitalization, Bitcoin could reach USD 14,000.