Bitcoin’s price rose early in the London session, after Reuters reported that PayPal has released payment with Bitcoin to millions of merchants.
The payments giant, which began offering bitcoin custody and trading services in October last year, will now allow U.S. customers to use their cryptocurrency reserves to pay to millions of PayPal merchants worldwide. The service also extends to users who own Ethereum, Bitcoin Cash and Litecoin.
“This is the first time that people will be able to use cryptocurrencies in the same way as a credit or debit card on PayPal,” Dan Schulman, PayPal’s president / CEO, told Reuters before the formal announcement.
The offer made PayPal one of the biggest traditional financial giants, investing in the digital currency industry. Many analysts noted that this would lead to a price boom for cryptocurrencies, with the first signs already emerging in the bitcoin and altcoin market.
Bitcoin rose more than 2.5 percent to $ 59,300, shortly after PayPal news went live. Meanwhile, Ethereum, the second largest cryptocurrency, has risen more than 1.25% to $ 1,844. Litecoin and Bitcoin Cash increased 1.97% and 2.36%, respectively.
The price of bitcoin was already rising amid a renewed appetite for safe havens on Wall Street.
Investors had expected a sharp drop in the outcome of Archegos Capital Management of more than $ 30 billion in shares in recent sessions. The family fund’s losses led banks that broker their operations to liquidate positions, with Credit Suisse and Nomura Holdings admitting that they were at risk of facing losses.
Bitcoin has progressed more and more in the news, although no evidence could correlate the two events. Meanwhile, investors’ expectation of potential stock market turmoil has increased their appetite for the US dollar, their safest bet against economic uncertainty.
With PayPal in support of it now, Bitcoin now hopes to extend its price hike beyond the $ 60,000 psychological resistance level.
“The next key levels are $ 72,000-100,000 in Bitcoin,” said Zhu Su, CEO / CIO at Three Arrow Capital.