Behind the Bitcoin boom, which has pushed within a whisker of all-time highs, there are multiple factors.
Among the most significant ones at this end of 2020 there is certainly the expansion of the audience of potential buyers of cryptocurrencies with the fintech companies that are helping to fuel the demand for Bitcoin by opening the doors to this type of investment to millions of people.
There are also major investors who are publicly supporting the cryptocurrency.
The push from PayPal and Square
The weakening dollar explains why bitcoin, as well as gold and silver, have shone from the market crash in March onwards.
The bullish movement was triggered by multiple news, first of all that arrived from PayPal: the payment giant has signed a partnership with the Paxos Trust Company, which will have the task of dealing with trading and custody services, thus allowing customers to PayPal to buy and sell Bitcoins (service already active for US customers).
A drastic change for PayPal, considering that former PayPal CEO Bill Harris called Bitcoin "the biggest scam in history".
Square also bet on cryptocurrencies by investing $ 50 million in Bitcoin, the company bought 4,709 bitcoins, equal to 1% of Square's total assets at the end of the second quarter.
We believe Bitcoin has the potential to be a popular currency in the future. For a company that builds its products on the basis of a more inclusive future, this investment is a step in the desired direction
Square said.
Added to this are well-known investors such as Paul Tudor Jones who publicly support cryptocurrency. According to analysis by Hedge Fund Pantera Capital, PayPal and Square's customers buy a large part of the new bitcoins entering the market, estimating that Square's customers have accounted for as much as 40% of the bitcoin entering the market in the two years since launch, while those of PayPal are even buying 70% of all the bitcoins just mined in these first weeks in which they can access the purchase of the cryptocurrency.
Three-digit rise to new records
The cryptocurrency first climbed close to $ 20,000 around Christmas three years ago but plummeted soon after, and has never recovered to the $ 18,000 level until recent weeks.
Bitcoin has risen by 260% from its low in March and in the last month alone has risen by 40% to exceed 19,000 a few days ago.
Difficult predicts Bitcoin's long-term potential, but PayPal's decision to allow its approximately 340 million users to buy and sell cryptocurrencies, including Bitcoin, could "comfort that cryptocurrencies are destined to stay."
Not just Bitcoin, crypto mania is total
While the spotlight is almost all on Bitcoin, other cryptocurrencies show even more spectacular movements. Ripple (XRP), for example, has risen by nearly 40% and by more than 140% in one week.
Ripple finds support in the confirmation of its collaboration with Bank of America. The company revealed that Bank of America is one of its main clients on RippleNet with Banco de Santander, Standard Chartered, Mesi, SCB and Moneynet.
More info on the altcoins that have registered the biggest "boom" in recent days can be found HERE.
Ethereum, the second largest cryptocurrency by market value, reached $ 600 just three days after surpassing $ 500. Trade boom (from $ 11 billion last week to $ 27 billion two days ago) also explained by the strong waiting for the imminent launch of Ethereum 2.0, a network update set to solve the coin's scalability problems.
More info on Eth 2.0 HERE.
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