Sometime last year, the payment giant revealed its plans of integrating crypto trading services into the platform’s system. The creation brought an uproar on social media concerning the institutional adoption and promotion of the blockchain-based assets. Bitcoin hit the $36,000 mark, few hours after hitting an incredible $35,000.
Sources are linking the new surging prices to the latest crypto feature added to the PayPal system. The digital asset amassed almost 6% to its previous gain from the newest gain by moving from its last $33,000 to its current price. The crypto is also showing some bullish momentum based on recent statistics. Bitcoin keeps setting new records for itself, and analysts predict the crypto reaching the $40,000 price tag.
Bitcoin exceeds $33k line to reach new price
After Bitcoin moved from its January 2nd price of $33,000 price range, it changed route and moved to $35,000. The crypto gained and welcomed the $36,000 price within some hours, moving by almost 3,000 within 24 hours. Michael Gord, CEO of an exchange, explained that the incredible demand from the two major markets, retail and institution, caused the price to grow even more.
He noted that the old crypto still has a small market capitalization when compared to other assets globally. Despite being small, Bitcoin carries almost 70% of the total market in the cryptocurrency industry. The CEO noted that institutional buyers dominated the digital asset market in 2020 but that retailers are also showing an interest in the cryptocurrency causing higher prices. Paypal partnered with Paxo late last year to integrate the digital asset services into it.
Paxos created the platform. Trading platforms have hinted that the trading platforms face an increased rate in terms of trading volumes. itBit, an exchange, linked PayPal’s new services to volume growth. Usually, the platform sees around $6 million daily trading volumes, but now, the firm averages around $26 million every day.
How altcoins gain with PayPal
The online payment platform will add significant digital assets asides from Bitcoin and has support for in-demand assets like Ethereum, Litecoin, and several others. Buyers are now getting interested in altcoins in anticipation of a massive price gain. A source explained that the new appeal for altcoins is because traders are looking for large returns on cryptocurrency. The source suggests that Bitcoin might start to depreciate in the market when buyers eye other cryptocurrencies.
In terms of market capitalization, Bitcoin lost some market share to other digital assets around early January. Entrepreneurs are looking to put money into smaller crypto like Ethereum, which is equally gaining relevance rapidly. Ethereum touched the $1,200 price range this week, and numerous derivates might be surging prices.
Grayscale recently revealed its strategy to increase Ethereum prices by making investors buy ETH to pay off their ETHE loans. The theory recorded some level of success because Ethereum’s volatility helped it gain immensely alongside Bitcoin. Consumers see Ether as the next Bitcoin; that is why the demand for it increases daily, and so its prices as well. Ethereum holds $63 billion in the total $1 trillion market cap, and people suggest that institutional buyers will increase demand in some weeks.
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