What’s behind Bitcoin’s recent rise? It could be PayPal.

Bitcoin’s recent rise may be related to Paypal onboarding 300m+ potential buyers.


November 23, 2020

Source: Giphy

Whatever you think of the crypto community, one thing’s for sure: they love memes. And, if there was an appropriate meme for the moment, it would be John Wick proclaiming that he’s “back.”

Bitcoin hit an all-time high of $19,783 on December 17, 2017, before falling 80%+ over the next 12 months. Now, the digital currency is back up over $18k.

BTC has gained ~160% in 2020

Izabella Kaminska from the Financial Times maps out a few popular theories for why people are buying up Bitcoin:

  • Rising inflation concerns related to massive government stimulus
  • Growing distrust in authority

Another more recent catalyst is PayPal. On October 21st, the fintech leader announced it would facilitate the buying and selling of cryptocurrency. Since then, BTC is up 40%+.

PayPal brings 300m+ verified buyers into the fold

An industry insider tells Kaminska that trading activity from PayPal’s crypto broker-dealer (itBit) has spiked since PayPal entered the game.

Even if PayPal is creating a demand boost, it should be noted that Bitcoin is becoming more mainstream than the rah rah 2017 days:

  • Public companies are adding Bitcoin to their balance sheets (Microstrategy, Square).
  • Bitcoin’s current market cap (price x total supply, which has expanded since 2017) is now larger than Mastercard’s.
  • The chief investment officer of Blackrock, the world’s largest asset manager, told CNBC that Bitcoin is “here to stay” and could potentially replace gold.

We have no idea what comes next, but are pretty sure that one of these John Wick memes will be able to explain it.

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