News breaking today that payments giant PayPal would be supporting cryptocurrencies sent the price of Bitcoin rocketing over $1,000 in a single day. But it was another asset that soared to a new all-time high on the news. Here’s how PayPal’s stock shares also benefitted from supporting the emerging asset class.
Bitcoin Blasts Over $1,000 In 24 Hours On Heels Of PayPal Support Announcement
Today was a monumental day for Bitcoin and cryptocurrencies. A company that was once vehemently opposed to the emerging asset class, even going as far as to block payments made to and from service providers associated with the financial technology, is now changing its tune.
PayPal, the payments giant, has revealed support for Bitcoin and other “virtual coins” according to a statement.
Related Reading | Bitcoin Retests 2020 High Following PayPal News, Will BTC Roar Higher?
The company serves over 346 million users worldwide and will let these users spend cryptocurrencies at over 26 million merchants globally.
Bitcoin currently has roughly 187 million users, so the exposure to the mainstream userbase PayPal commands cannot be understated.
Bitcoin sets new 2020 peak following PayPal support news | Source: BTCUSD on TradingView.com
But It Is PYPL Stock Shares That Soar To New All-Time Highs On Crypto Callout
Markets responded in a major way to the breaking bullish Bitcoin news. The leading cryptocurrency by market cap soared over $1,000 in a single day, setting a new 2020 high.
As well as the cryptocurrency market itself performed on the reveal, it was PayPal that set a new all-time high today on the heels of word making rounds.
PayPal stock shares set new all-time high following crypto support news | Source: PYPL on TradingView.com
Comparing the two charts, PayPal and Bitcoin have followed a similar path in 2020, with a steep decline around Black Thursday that was followed by even stronger returns than what started the year.
Assets performing so well during a pandemic and economic recession is the result of the dollar weakening and its buying power falling.
The effects are amplified when the asset the dollar is paired with is performing extremely well. Bitcoin is a scarce asset that is suddenly being sought as a hedge against inflation. The association with the cryptocurrency alone was enough to give PayPal a shot in the arm as well.
Related Reading | 21 Million BTC: How PayPal Active Users Underscores Bitcoin Digital Scarcity
But the news may not be all its cracked up to be. Industry analysts fear that because PayPal doesn’t allow users to move the assets to owned personal wallets, the controversy of “not your keys, not your Bitcoin” has muddied the positivity.
Still, it is a major step in the right direction, and these days, it doesn’t require much in the way of positive news, to send the cryptocurrency soaring another $1,000 or more. So even if this does turn into a non-event, the news itself could have been enough to give bulls the confidence to push prices to a higher high finally and confirm the new uptrend.
Featured Image From Deposit Photos, Chart from TradingView.com