Bitcoin Spikes Following Major PayPal Announcement

The world’s number one cryptocurrency has done it once again. The asset that everyone knows as bitcoin has struck a new high now that October has come into play. The currency is presently trading for well over $12,400, marking the highest it’s been since hitting its late August high.

Bitcoin Is Back Above $12,000

Approximately two months ago, bitcoin hit the $12,400 mark, thereby striking the highest point it’s seen in about a year. Everyone couldn’t help but chat silently about how the bullish momentum bitcoin had garnered would potentially last forever, though sadly, this was hardly the case. Once September rung in, the currency found itself struggling to maintain ground, and it wasn’t long before bitcoin was shedding numbers off its price.

During the first few days of the month, bitcoin had fallen to about $10,100, and the asset lost more than $2,000 since hitting its yearly high just a few weeks before. The rest of the month – which is historically rather bearish for the world’s number one digital currency – wasn’t particularly kind in that bitcoin could not keep its energy and strength up. The currency did manage to move beyond $11,000 again on the 19th, but this spike barely lasted a day, and soon after, traders saw BTC sink back into the $10K region.

But the following month in October, bitcoin quickly surged into the $11,000 space and stayed there. Now, the $12K chord has been struck, and it doesn’t look like bitcoin is going back anytime soon.

The sudden rise to this new high comes after it was announced that online payments platform PayPal is going to allow customers to utilize cryptocurrencies. Customers now have the option of using bitcoin, Ethereum, bitcoin cash and Litecoin, which they can send to sellers as a means of paying for goods and services. This is the first time PayPal has paved the way for such activity, and the announcement has led to a near-five percent surge in the price of BTC.

PayPal Is Paving the Way for Crypto

PayPal also stated that it plans to allow crypto usage on Venmo as well in the coming future. Dan Schulman – the president and CEO of the company – explained in an interview:

The shift to digital forms of currencies is inevitable, bringing with it clear advantages in terms of financial inclusion and access; efficiency, speed and resilience of the payments system; and the ability for governments to disburse funds to citizens quickly.

His words suggest a growing arena for cryptocurrencies. Many companies and institutions are now seeing them as here to stay and are paving the routes for easy utilization the way one might use standard fiat cash or credit cards. The news has also not just positively affected bitcoin. Bitcoin cash and Litecoin both incurred spikes of more than seven percent each following the news.

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