Bitcoin exceeds $ 50,000 as Paypal adopts crypto payments in UK

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Itcoin rebounded above $ 50,000 today as the cryptocurrency experienced a dramatic rally after a price collapse three months ago.

The world’s largest cryptocurrency by aggregate value has jumped over 4% in the past 24 hours to hit overnight highs of around $ 50,440 (37,040), its highest level since the 15th. may.

The latest price spike came after Paypal said it would allow UK users to buy, hold and sell Bitcoin and other cryptocurrencies, including Ethereum and Litecoin, from late in the year. week. Paypal introduced the feature to the United States last year and the United Kingdom is the second largest market in the world where it has been launched.

Bitcoin has gained over 71% in value since the start of 2021, although it remains below an all-time high of nearly $ 65,000 (47,741) reached in April.

Other digital coins, notably Cardano and Tether, have also gained ground in a large rally in recent days.

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The value of Bitcoin and other digital coins fell sharply in June and July, falling below $ 30,000 at one point. The crisis was sparked by a regulatory crackdown in China, which is developing its own national digital currency controlled by the country’s central bank.

The value of the total global cryptocurrency market has increased by nearly $ 1 trillion over the past month to around $ 2.2 trillion, prompting Britain to warn the Financial Conduct Authority that the Investors in crypto assets face significant risk and must be prepared to lose all of their money.

More and more asset managers are looking to gain more exposure to the cryptocurrency market. At least four asset managers recently filed with the United States Securities and Exchange Commission (SEC) for ETFs that invest in Bitcoin futures after SEC Chairman Gary Gensler recently reported his willingness to approve such funds.

Paypal has dismissed criticism of its plans and said it will introduce educational content on its app to help educate and protect crypto investors.

Nigel Green, CEO and Founder of deVere Group, said: I remain confident that Bitcoin will reach, if not surpass, its all-time high in mid-April of $ 65,000 by the end of 2021.

The executive is among the most persistent crypto bulls in the world. Last month, he claimed crypto is the inevitable future.

The price of Bitcoin was around $ 11,500 a year ago.

Laith Khalaf, Head of Investment Analysis at AJ Bell, said: The possibility of trading cryptocurrencies is not new, but the importance of PayPal’s entry into the UK market lies in its potential. for processing cryptographic transactions between consumers and businesses.

This is not a service that will initially be offered in the UK, but it is already operational in the US, where PayPal crypto companies only started last October, so we can expect a fairly rapid development on this side of the pond as well.

Of course, there is always the problem of consumer and business demand to transact in crypto. Moreover, it is questionable how many companies that accept crypto will want to keep it after the transaction, which makes such a transactional installation little more than a sales gimmick.

Crypto is clearly extremely volatile, and although companies have bills to pay in dollars, pounds, and euros, they are unlikely to want to store much crypto on their balance sheets, lest prices take a hit. ‘one of their usual dives.

While many undoubtedly use crypto as a harmless bit of fun with small amounts of money they can afford to lose, some consumers risk being sucked in and spat out by the crypto craze.

In the crypto market itself, PayPal’s presence is positive in that it is a high profile publicly traded company that is already under regulatory scrutiny. But overall, the crypto craze remains a concern for consumer advocates and regulators, as well as die-hard Luddits.

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