The price of Bitcoin (BTC) approached the region of $ 13 thousand per BTC a few hours after PayPal announced it would open trading services for Bitcoin, Ether, Bitcoin Cash, and Litecoin.
PayPal announced it around 19:30, October 21, 2020. At that time the Bitcoin price was still in the range of $ 12,300 per BTC.
Until a few hours later, it peaked at $ 12,870, because it was slightly corrected to the range of $ 12,700 (22 October 2020).
Technically, the price of Bitcoin, which immediately flew past$ 12,870 and has surpassed the 17 August 2020 resistance at $ 12,300 per BTC, most likely will target the region of US $ 15,000 to $ 16,000.
Thus, new reinforcement for the last 3, 6, and 12 months was formed, namely 33.15 percent, 69.35 percent, and 54.44 percent respectively.
On Wednesday (21 October 2020), PayPal announced that it would launch a trading service for Bitcoin and a number of other popular crypto assets. The news dismissed rumors of the preceding months.
The new service is directly integrated into the PayPal account of each user. Starting next year, PayPal users can also use crypto assets in their accounts to shop at 26 million merchants directly.
The PayPal announcement practically adds power to Bitcoin as the King of Crypto Assets. Previously, the price of Bitcoin skyrocketed because of the decision by Square, led by Jack Dorsey, the founder of Twitter, to buy Bitcoin worth $ 50 million.
Before Square, there was another public company that bought trillions of rupiah worth of Bitcoin, namely MicroStrategy. Even at almost the same time, Fidelity announced the launch of Bitcoin Fund products such as Grayscale's.
Don't be too happy, Bitcoin on PayPal can't be sent
Prior to the launch of Bitcoin, Ether, Bitcoin Cash, and Litecoin trading services on PayPal, you fans of crypto-assets don't be too excited. This is because crypto assets on the service cannot be sent out of your account. At least maybe for a while.
PayPal mentions that prominently on its official website. PayPal explains, that crypto assets, for example, Bitcoin (BTC) purchased cannot be transferred/withdraw to other PayPal accounts, including ordinary crypto-asset exchange wallets or personal wallets.
This means that after you buy Bitcoin using US dollars on the PayPal service, Bitcoin is immediately available in your account, without being able to be transferred at all.
Bitcoin will return to the PayPal wallet custodian when you sell it or use it in online payments to a number of merchants that number in the tens of millions worldwide.
These merchants do not themselves accept Bitcoin but accept dollars or other supported fiat currencies. The PayPal system will convert them instantly. Especially for this service, it will be held in early or mid-2021.
In essence, the PayPal service is similar to buying crypto-assets at Revolut and Robinhood. Users who buy Bitcoin on PayPal can feel that they own the King of Crypto Assets, but cannot move Bitcoin out of other platforms or addresses.
Even PlanB, the creators of the Stock-to-Flow (S2F) model for Bitcoin, was initially optimistic, finally making a ridiculous statement.
Ripple CEO Brad Garlinghouse also said that the PayPal news as a whole breeds optimism, but takes two steps forward and one step back.
Btc will dump soon. I know it