This Wednesday, the main cryptomoney in the market, Bitcoin reached 13K. After it was known that PayPal will accept cryptos.
The main crypto currency on the market, Bitcoin reached 13K after the announcement that PayPal will accept operations with crypto currencies. Financial technology 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 recognizes the optimism of a company the size of PayPal moving into space, there was also concern that the new service would not allow bitcoins or other cryptom currencies to be withdrawn or deposited. Once you buy the coins, they remain in your account until you sell them.
Bitcoin Cash, Ethereum and Litecoin prices also recovered with the news, between 8% and 11% in the last 24 hours. Currently, according to our online crypto tool, Bitcoin is quoted at USD 12,800, with an increasing variation of 4.19% in the last 24 hours.
PayPal will allow crypto currencies such as Bitcoin and Ethereum
What do the experts at Bitcoin say?
As we mentioned before, yesterday the price of Bitcoin reached 13K. And even surpassed them to reach USD 13,217. After traders broke through key resistance levels at USD 11,900, USD 12,000 and USD 12,500 in the last 48 hours.
While there are several technical reasons behind this sudden upturn. There are three key factors that drove this rally.
First, the announcement that PayPal will accept crypto currencies including BTC, undoubtedly boosted its price.
Two, Bitcoin’s dominance is on the rise: Last week, Bitcoin overtook the altcoins, the tokens of decentralized finance (DeFi) and Ethereum.
And three, that Bitcoin, shows a bullish structure in the longer time frames.
Now, in the short term, some traders expect the market to cool down after such a strong move. Flood, a pseudonymous trader of cryptomone futures, said:
„I think we’re pretty overextended at BTC at the moment. I imagine we’ll see a bit of a reversal where we’ll try to find support in the $12,200 to $12,000 range. I’m not saying we can’t go further, but we can cover ourselves a bit here.
BTC could reach USD 14,000 by the end of the year
After Bitcoin’s big jump this Wednesday. The crypto currency exchanges tracked by the intelligence firm Blockchain Chainalysis received a total of 106,519 BTC on Wednesday, the highest daily entry since October 2nd. A similar peak was observed on September 4.
However, Philip Gradwell, Chainalysis‘ chief economist, told CoinDesk that „the uptick in currency inflows indicates that some investors were quick to liquidate their holdings (make profits) in the rising market.
So far, about 30,000 BTCs have been transferred to exchanges, Gradwell said.
He also said that this year has been one of great adoption of cryptomoney and cryptographic assets in general. So a 2021 full of more widespread adoption is expected. He concluded by saying that by the end of the year, Bitcoin, the leading crypto currency in terms of market capitalization, could reach USD 14,000