In the early hours of June 23rd, Bitcoin started to rise, soaring from $9,400 to a maximum of $9786.1, and then falling back to around $9,600, leaving the horizontal channel that was locked in last week.
After having fluctuated between $9,300 and $9,600 in the past 10 days, Bitcoin successfully broke through weekly resistance and reached its highest level since the price fell two weeks ago.
Behind this, we pay attention to an important news: the payment giant PayPal plans to launch a cryptocurrency trading service. What is going on with this plan? As a world-renowned fintech giant, what does this move mean for the cryptocurrency market? And is this bitcoin’s rise officially the force of breaking away from the horizontal channel, or is it the FOMO sentiment brought by PayPal?
On June 23, according to Coindesk, according to three insiders, payment giant PayPal and its subsidiary Venmo (PayPal’s mobile payment service) plan to provide cryptocurrency purchase and sale services to its 325 million users in the next three months . Currently, users can use PayPal to withdraw funds from exchanges such as Coinbase, but this will be the company’s first direct sale of cryptocurrencies.
A senior industry source said that users may be allowed to buy and sell cryptocurrencies directly from PayPal and Venmo. PayPal will provide some kind of built-in wallet function for storing encrypted currencies. It is unclear what kind of cryptocurrencies are available for trading, but it is expected that PayPal “will work with multiple exchanges to obtain liquidity.”
As of now, PayPal official said it will not comment on rumors or speculation.
According to sources, San Francisco’s cryptocurrency exchange Coinbase and Luxembourg’s Bitstamp may be competitors to Paypal’s “cryptocurrency trading” service.
But it is worth noting that PayPal and Coinbase have a long-term cooperative relationship, which can be traced back to 2016 at the earliest. In 2018, Coinbase provided US customers with an instant fiat money withdrawal service to PayPal. Last year, European users of Coinbase could withdraw funds to their PayPal account, followed by users in Canada also provided the service of withdrawing fiat money to PayPal account.
It can be seen that cryptocurrencies are increasingly seen as a way to increase users of fintech applications and create new sources of income. In fact, PayPal CEO Dan Schulman (Dan Schulman) has made it clear that his plan this year is to actively use Venmo to expand revenue, the software has more than 52 million accounts.
Earlier this year, PayPal was hiring cryptocurrency and blockchain experts and posted eight engineering job vacancies to expand its new blockchain research team, four of them in San Jose and four in Singapore.
PayPal’s attitude towards Bitcoin was relatively repulsive, and even Paypal’s former CEO also bombarded Bitcoin as the biggest scam in history. But now it is planning to launch a cryptocurrency trading service, and the “true fragrance” general attitude change is incredible.
Facts have proved that PayPal, as the world’s leading payment provider, is naturally not far behind in the development trend. Earlier, PayPal appeared on the list of Libra members of the Libra project, but it was the first to quit. Asked why by the media, Paypal’s current CEO Daniel Schulman stated that this was the result of the company’s deliberations,
“If we focus on our roadmap, we can advance financial inclusion faster than using all these resources for Libra.”
In other words, the regulatory burden faced by Libra is not the reason driving PayPal to withdraw from the Libra project, but as more details about Libra are disclosed, the Paypal team realizes that the project still has a lot of work to do, and Paypal is already working Own projects to achieve similar goals.
A source said that since PayPal “sneered” at the Libra project last year, the focus is now on expanding its payment expertise.
At the end of 2019, Daniel Schulman revealed that PayPal is developing its own encryption project. However, he emphasized, “Cryptocurrencies are still very volatile, and because the profits of traders are small, we do not have much demand for cryptocurrencies.”
Despite his skepticism about cryptocurrencies, Paypal saw the prospect of blockchain technology. In an interview with CoinDesk earlier this year, Sri Shivananda, PayPal’s chief technology officer, said that the company hopes to have an “own perspective” on the blockchain technology itself and be able to understand how it creates an open Digital payment platform that can serve everyone. He emphasized, “We firmly believe in the potential of blockchain, and the digitization of currency is only a matter of time. ”
In addition to financial giants such as PayPal, many mainstream fintech companies are increasing traffic and revenue by improving cryptocurrency services. For example, Cash APP has also achieved extraordinary results this year. Twitter CEO Jack Dorsey launched the payment “Unicorn” Square in mid-2018 with a Bitcoin purchase in its Cash App, which currently contributes 3.06 in its latest earnings report 100 million USD in Bitcoin revenue.
PayPal is an online payment service headquartered in San Jose, California. It was founded by Peter Thiel, Max Levchin and other young people in December 1998, and later Elon. Musk became its largest shareholder and CEO in the early days, which promoted the rapid development of PayPal. PayPal was listed on Nasdaq in 2002 and was subsequently acquired by eBay, the world’s largest C2C e-commerce platform. Musk finally received $180 million in cash and Withdrawal, the PayPal business has been split and operated independently from eBay.
PayPal is the main payment business, providing transfer, payment, collection and other services, covering 202 countries and regions, supporting 25 currencies, becoming a leader in cross-border payment services, known as the global version or the American version of “Alipay.” It is reported that PayPal cooperates with many e-commerce websites and some mainstream digital asset trading platforms. For example, OKEX can add a “PayPal” account in the legal currency payment setting.
In the fourth quarter of 2019, PayPal exceeded 300 million active accounts, and its CEO stated that the company’s next target is 1 billion users. Revenue increased by 17.3% year-on-year to 4.96 billion US dollars, and payment transactions increased by 21% to 3.5 billion.
If according to PayPal’s huge user volume and traffic level, then assuming that PayPal supports cryptocurrency transactions, what impact will it have on the cryptocurrency market?
The launch of PayPal’s cryptocurrency service, in addition to adding a formal cryptocurrency purchase channel to off-site ordinary investors, especially mainstream U.S. investors, the greater impact is that it will bring large-scale adoption to the cryptocurrency market And massive native payment users. This is nothing more than a “stimulant” for investors in the crypto market.
This is probably why many people think that today’s Bitcoin rise is driven by PayPal’s “rumors”. In addition, according to the financial industry report, boosted by this news, many US stocks concept blockchains surged overnight. As of the close of US time on Monday, Marathon Patent (MARA.US) rose more than 29%, Riot Blockchain (RIOT.US) It rose by more than 18%, Jianan Technology (CAN.US) rose 10%, and Thunder (XNET.US) rose nearly 7%.
However, we observed that before this news came out, Bitcoin began to rise slowly from the lowest price of $9267 after the opening. The closest support level at the time of the pullback is around $9,600. If Bitcoin can maintain the support level, it will be good news, because it means that Bitcoin has inherent motivation to rise, and it can smoothly go from its level. Came out of the channel. However, if it breaks the support, there is a high probability that this wave of rise is driven by the market FOMO sentiment caused by the news surface, and we are still in a market with no clear trend, which remains to be seen.