The news that PayPal was entering the cryptocurrency market sparked a rally in the markets. Bitcoin surpassed the USD 13,000 benchmark for the first time since July
PayPal confirmed yesterday that it is entering the cryptocurrency market. The global payment service provider stated that customers can use it to buy, hold and sell selected cryptocurrencies. Initially, PayPal only supported Bitcoin, Ethereum, Bitcoin Cash, and Litecoin. These cryptocurrencies can be bought, sold or stored directly in the PayPal digital wallet.
The cryptocurrency service would initially be available to customers in the United States in the coming weeks. PayPal will work to expand services to Venmo and other international markets in the first half of next year. The cryptocurrency service via PayPal is made available thanks to its partnership with Paxos Trust Company, a regulated provider of crypto services and products.
PayPal found that the increasing need for digital payments was the main reason for entering the market. The company intends to make it easier for people to use cryptocurrencies to pay for goods and services in different parts of the world. PayPal Holdings, Inc. (NASDAQ: PYPL) today announced the launch of a new service that enables customers to buy, hold and sell cryptocurrency directly from their PayPal account as a source of funding for purchases at 26 million merchants worldwide “Added the blog post.
PayPal added that customers could easily convert their selected cryptocurrency balance to fiat currency. You would enjoy the security of value and no additional fees. PayPal merchants are not charged with additional integrations or fees as all transactions in fiat currency are processed at their current PayPal rates.
Bitcoin rises above $ 13,000
PayPal’s announcement caused Bitcoin to surpass the $ 13,000 level for the first time since July and only for the third time since the bull run in late 2017. Bitcoin has been trading in the five-digit range for twelve weeks and is hovering above USD 13,000 consolidating its position in this region.
Following the PayPal announcement, Bitcoin rose 10% while Ethereum, Litecoin, and Bitcoin Cash also rose 8%, 15% and 9%, respectively. Bitcoin price has lost its momentum and is now trading in the region of $ 12,700.
While the rally didn’t last, some experts believe PayPal’s entry into the market is a bullish sign as millions of new users will enter the crypto space via the company.