Bitcoin is taking firm steps towards $ 13,000 with its steady rise in recent days. An analyst attributes this upward trend of bitcoin to two main reasons; Paypal and USA incentive package.
Bitcoin has increased by 4.4% in the last 24 hours and by 12% in the last 7 days, increasing its price to around $ 12,790. Bitcoin started to be counted among the best performing macro assets with this road it traveled. In fact, Bitcoin showed a net increase of over $ 11,000 last week and entered a consolidation process after the withdrawals from OKEx were stopped.
Bitcoin has shaken off its dead soil in recent days and has gained significant momentum. Analyst Nick Chong attributes this momentum to two main developments.
Crypto Money Move From PayPal
In fact, the public had been waiting for PayPal’s action on cryptocurrencies for a while. With job postings published months ago and a number of reports leaked to the press, many people could anticipate PayPal’s move, but there was still no official statement.
Here came the expected explanation; PayPal announced that it will support cryptocurrencies. Although Bitcoin, Ethereum, or other altcoins purchased through the platform will not be able to be withdrawn, many chose to interpret this move as “acceptance of cryptocurrencies”. He announced that it will also give Paypal users the chance to buy products from sellers who accept payments with digital assets.
Incentive Package Disclosures
The United States is awash with the echoes of the 2nd stimulus package they plan to release for the people affected by the coronavirus. The package has not been decided yet, and the negotiations have turned into a snake story. Many economists have claimed that the stimulus package will not prevail in the US presidential election on November 3. But election candidates Joe Biden and Donald Trump are determined to turn the stimulus package in their favor.
If Joe Biden is elected, it is anticipated that he will make a very generous offer, as one of the first actions of the new president is expected to be this incentive package. In addition, Donald Trump emphasized with his recent statements that the incentive bill will soon be received and a decision will be made in favor of the public. In both cases, injecting dollars into the market with the incentive package is interpreted as a positive development on the Bitcoin wing. While it is seen that the dollar will lose value with the incentive packages, beliefs in Bitcoin continue to increase and the price continues to gain momentum.