Online payments giant PayPal will start to accept cryptocurrency as a medium of exchange at its millions of global merchants, the firm’s president and CEO revealed on Tuesday ahead of a formal announcement.
On March 30, news broke about PayPal’s alleged decision to consider cryptocurrencies. Later that day, the company’s CEO, Dan Schulman, stated to Reuters that the rumours were accurate and that an official statement will be issued shortly.
The new system is expected to feature a crypto checkout service where users can pay for goods and services at approved vendors using their stored coins. As it launches, the checkout app will be usable for all four of PayPal’s approved cryptocurrencies: Bitcoin (BTC), Ether (ETH), Litecoin (LTC), and Bitcoin Cash (BCH). Customers who pay for coins would not be charged any conversion costs for orders, although only one cryptocurrency may be used each transaction.
Stablecoin reserves on cryptocurrency markets have reached a current historic peak of $10 billion.
Stablecoins such as Tether (USDT) and USD Coin (USDC) have achieved another landmark in terms of trade accumulation.
According to business data provider CryptoQuant, stablecoin deposits on global crypto exchanges surpassed $10 billion on March 28.
According to CryptoQuant data, volumes of stablecoin holdings on exchanges have been repeatedly seeing all-time highs this year, surging more than 100% in two months. As previously reported, stablecoin inflows are often seen as a short-term indicator of bullish action for Bitcoin (BTC), suggesting that sidelined capital is moving back into BTC.
Other metrics, such as CryptoQuant’s All Exchange Stablecoin Ratio, when combined with increasing stablecoin accumulations, could theoretically lead to another upward step in crypto markets. On March 27, technical analyst Crypto Seer observed that the metric had fallen to its lowest level since November 2020.
According to Galaxy Digital CEO Mike Novogratz, as affluent baby boomers invest in cryptocurrencies, up to a trillion dollars could pour through bitcoin over the next year. Using Morgan Stanley as an example, he claims that more banks will begin to sell bitcoin exposure to their customers.
In an interview at Reuters Digital Assets Week last week, Michael Novogratz, a lifelong bitcoin bull and founder of Galaxy Digital, discussed the potential prospects for bitcoin. He elaborated, saying that as cryptocurrencies become more mainstream, wealthy baby boomers will be the next generation to invest in cryptocurrencies: “It could be as much as a trillion dollars comes over the next year from that giant group of wealth”.
On March 24, the founders of crypto analytics company Glassnode tweeted data showing that options traders on Deribit, a peer-to-peer crypto derivatives platform, are stockpiling contracts with a strike price of $80,000 expected to expire on April 30.
Contracts with a notional value of 4,000 BTC have been bought targeting the price-point in particular, which is at least 50% more than any other strike-price.
If the price is less than $80,000 at the end of April, the contracts will be worthless, suggesting that futures traders think the Bitcoin markets are quite a long way from peaking.
However, according to crypto derivatives data aggregator Skew, probability estimates based on market data for the April 30 contract suggests there is just a 6.19% chance of BTC prices being above $80,000 when the positions mature.
The global bull market’s third big correction is worsening, with shares now down 12.5 percent from their all-time high of $60,100 on March 13.
According to CoinGecko, the BTC market capitalization is now $980 billion, down $140 billion in the seven days from last Thursday, March 18.
The move comes just a few days after analyst Willy Woo predicted that its total capitalization would not fall back below these levels again.
The BTC market cap first reached a trillion dollars on February 19 but did not last there long, slipping below it after just four days. It surpassed ten figures for the second time on March 9, and it stayed above that mark until today’s slump.
The total market capitalization for the entire crypto ecosystem is currently $1.65 trillion according to CoinGecko. It has fallen by 9.8%, or $180 billion since Monday, March 22.
Elon Musk has confirmed that Tesla vehicles can now be bought using Bitcoin (BTC). The CEO of the electric car business and “Technoking” stated that the company would operate Bitcoin nodes directly and would keep the Bitcoin it accumulates without converting it to fiat.
According to an SEC filing, Tesla first indicated its intention to begin accepting Bitcoin for goods in early February, following a $1.5 billion acquisition of the digital asset. For the time being, buyers in the United States will be able to purchase a Tesla using Bitcoin.
Glassnode, an on-chain analytics supplier, reported a decrease in the number of Bitcoin whales in its March 22 Week on Chain report, despite steady accumulation from wallets holding 1 BTC or less since March 2018.
In comparison, whale addresses holding more than 100 BTC have been relatively flat, with the group currently holding 62.6 percent of the supply — an increase of only 0.87 percent over the past year.
Glassnode is not alone in speculating the end of the bull season may be looming, with Chinese mining pool BTC.TOP CEO Jiang Zhuoer speculating the bull market could be over as soon as September.
Though Ether’s (ETH) price has remained stable around $1,800 for the past fortnight, users of the premier altcoin’s network have faced escalating gas fees and increased network congestion problems. To put things in perspective, since the summer of last year, when the DeFi boom was beginning to peak, Ethereum’s network fees have increased by more than tenfold.
While this fee increase is directly related to the rising value of ETH, there is no denying that it also clearly demonstrates growing demand for ERC-20 tokens, stablecoins, and other decentralized finance-based offerings in general.
As is evident from the chart below, costs of facilitating transactions on the Ethereum network have increased significantly over the last few months, with the average transaction fee touching an all-time high of $39.49 on Feb. 23.
“Bitcoin is extremely sensitive to increased dollar demand,” said the note authored by Bank of America strategist Francisco Blanch, featuring contributions from Philip Middleton and Savita Subramanian.
According to the report, it will take at least $2 billion in inflows to move the price of gold by a single percentile, while more than $2.25 billion would be needed to have the same price effect on treasury bonds with a maturity of 20 years or more.
With the number of new companies entering the Bitcoin network hitting historically unheard-of heights, a growing number of participants are fighting for a dwindling pool of BTC, resulting in market increases that quickly push prices up.
Bitcoin struggled below $57,000 during early trading hours, according to data from Cointelegraph Markets and TradingView, before the announcement from the US Federal Reserve sparked a surge that brought BTC to an intraday peak of $58,243.
After it was announced that Morgan Stanley, an investment banking giant, would soon sell those investors access to three funds that allow clients to buy Bitcoin, bullish excitement for the top cryptocurrency began to develop.
Further validation for a continuance of the current bull market came from Bitcoin’s stock-to-flow creator PlanB, who feels that BTC “will not stop” at $100,000 and could reach an average price as high as $288,000 with its all-time high registering even higher.