Speculation over PayPal allowing customers to purchase Bitcoin came to a crescendo last week with a number of publications reporting that progress has been made.
This would unlock Bitcoin to more than 325 million users of PayPal, which would in turn be a major driver for mass adoption of cryptocurrencies.
The story broke according to “three sources who are familiar with the matter”, although scepticism has been raised among the cryptocurrency community on the legitimacy of the sources and information.
eToro market analyst Simon Peters shares the view of scepticism, claiming that “details surrounding the move are scant” and that “all parties involved have declined to comment on such speculation”.
PayPal's potential move to enable bitcoin trading shouldn't come as much of a surprise given the increase in interest in cryptocurrency amid the pandemic: https://t.co/AXsxOYHS2M by @donnabail
— Forbes Crypto (@ForbesCrypto) June 27, 2020
Peters continued: “The most interesting thing will be if (and how) PayPal utilises its pre-existing arrangements with various physical and online retailers. Given that a massive swathe of online retailers already have some deep integration with PayPal, will the firm begin to offer payment directly with crypto?
“That would be exciting indeed and would be a huge step towards seeing cryptoassets, such as bitcoin and its forks, being used to pay for everyday goods and services.”
In terms of price action, he concluded: “After the news broke, Bitcoin hit a very respectable $9,699, dropping off towards the end of the week as markets got spooked about the spike in coronavirus cases in some parts of the world.”
As noted in Coin Rivet’s daily analysis of Bitcoin, a move to the downside seems most likely over the coming weeks as the $9,000 level of support weakens.
However, more developments in a story like this one could well be that catalyst for a move to the upside that would propel Bitcoin back above the $10,500 level of resistance following numerous failed attempts.
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Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.