Bitcoin (BTC) surged past $13,000, shortly after breaking its previous resistance level at $12,000 the day before. Bitcoin managed to hit a new high in 2020, and passed the $13,000 level for the first time since July 2019.
The world’s largest cryptocurrency increased around 11 percent, as other altcoins also managed to climb higher as well. Litecoin (LTC) managed to see a 13 percent increase, while Bitcoin Cash (BCH) also climbed more than 7 percent.
Bitcoin and other cryptocurrencies managed to see gains soon after PayPal announced that it would let its customers use cryptocurrencies. PayPal customers can now purchase items and receive payments for goods and services using cryptocurrencies including Bitcoin, Ethereum, Litecoin, and Bitcoin Cash.
PayPal’s move has been seen as a significant development in the cryptocurrency market, as the payments company has a reach of over 340 million accounts worldwide and 26 million merchants on the network. As Bitcoin’s price rose after the announcement, PayPal’s shares also jumped 5.5 percent, reaching $213.07, another high since May this year.
CEO of Galaxy Investment Partners, Mike Novogratz commented on PayPal’s news:
“This PayPal news is the biggest news of the year in crypto. All banks will now be on a race to service crypto. We have crossed the rubicon people. Exciting day.”
PayPal’s announcement came after a series of recent announcements from large institutions, including two public companies, including MicroStrategy and Square. MicroStrategy invested in a total of $425 million in Bitcoin, and Square also invested $50 million in Bitcoin. Other firms also followed suit, including Stone Ridge Asset Management, and FinTech Group Mode.
It appears that PayPal’s development with cryptocurrency has triggered the biggest moves in the cryptocurrency market, as MicroStrategy and Square’s announcements did not trigger Bitcoin bulls.
As Bitcoin has reached its 15-month high after surpassing $13,000, BTC also recently witnessed the largest total exchange outflow of the cryptocurrency on Oct. 18, since April 29. According to crypto analytics firm Santiment, this was a clear bullish indicator for the cryptocurrency.
PayPal previously pulled out of the Libra Association, which was led by Facebook to develop a digital currency Libra, and a digital wallet, Novi, which was previously known as Calibra. Bitcoin could see further gains if the market there would be a shortage of the cryptocurrency’s supply.