Bitcoin price surges 4% to $9,800 on reports that PayPal will start offering crypto services

Bitcoin price surges 4% to $9,800 on reports that PayPal will start offering crypto services
  • Paypal is reportedly working on offering crypto buying and selling services to its users
  • The financial payments giant may roll out crypto services in the next three months, according to reports
  • Bitcoin price surges 4% to hit a 10-day high near $9,800

Bitcoin price (BTC/USD) jumped more than 4% yesterday after the reports emerged that financial giant Paypal (NASDAQ: PYPL) is working on offering crypto buying and selling services to its users. As a result, Bitcoin price jumped higher to trade near the $9,800 mark.

Fundamental analysis: PayPal may spark widespread adoption

Paypal, the financial payments giant, is preparing to start offering crypto buying and selling services to its 325 million users, according to media reports

“My understanding is that they are going to allow buys and sells of crypto directly from PayPal and Venmo. They are going to have some sort of a built-in wallet functionality so you can store it there,” an industry source was quoted by CoinDesk.

PayPal is reportedly holding talks with numerous crypto exchanges, namely Coinbase and Bitstamp. According to the media reports, PayPal may rollout its crypto service in the next three months. To see how you can buy Bitcoin with PayPal, click here.

Given that the financial payments giant serves around 325 million users, allowing crypto transactions on its platform would represent a major boost for the entire cryptocurrency market. More importantly, PayPal news may bring crypto one step closed to widespread adoption. 

“We are a strong believer in the potential of blockchain. The digitization of currency is only a matter of when not if,” PayPal Chief Technology Officer Sri Shivananda said.

PayPal is also said to be looking to hire two crypto-related persons, according to the job vacancies advertised on their website. Jobs advertised are for “Technical Lead – Crypto Engineer” and “Blockchain research engineer”, sparking rumours that PayPal is indeed moving towards allowing crypto operations on its platform. 

Moreover, PayPal is likely to allow crypto buying and selling on its popular mobile payment service Venmo, which has more than 50 million users.

Technical analysis: Bitcoin price surges higher

Bitcoin price gained over 4% yesterday on reports that PayPal is preparing to allow crypto buying and selling on its platform. The price exploded higher to $9,800 to print the 10-day high after nearly two weeks of trading in a subdued fashion. 

Bitcoin (BTC/USD) daily chart (TradingView)

The tight range around the $9,500 mark has been broken now as the buyers will hope to finally push the price action above the $10,000 handle in a sustainable manner. This area hosts the descending trend line resistance while $10,500 is where the horizontal resistance is located. 

PayPal news may spark a new round of buying interest in Bitcoin, in the context of predictions that Bitcoin may go to $20,000 by the end of the year.

Summary

Bitcoin price jumped over 4% yesterday after media reports emerged that the financial payments giant PayPal is looking to offer crypto transaction services on its platform.

By Michael Harris
Specialising in economics by academia, with a passion for financial trading, Michael Harris has been a regular contributor to Invezz. His passion has given him first hand experience of trading, while his writing means he understands the market forces and wider regulation.
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