Week in review: Bitcoin tests $14K, PayPal and Crypto, JPM Coin set to commercialize
The week of October 26 to November 1 saw a bullish outlook with Bitcoin reaching $14K, gaining increasing confidence among investors. Among blockchain developments, JPMorgan is set to commercialize it’s stablecoin after a period of positive trials. We also heard more discussion on PayPal’s crypto service and what it means for the mainstream retail market.
Regardless of the US Presidential outcome, Bitcoin sees rising interest among investors
What: According to Grayscale, interest for Bitcoin among US investors increased from 36% in 2019 to 55% this year.
Why it matters: Election season has historically been a bear period for traditional markets including Bitcoin. This year marks a more bullish outlook as investors bet on Bitcoin as a hedge against inflation and a long-term portfolio asset.
Bitcoin tests $14K with the highest monthly close in sight
What: Bitcoin touched $14,100 for the first time since January of 2018, inching higher and higher towards all time highs. Sideways range-bound action can be expected as history suggests Bitcoin is set to enter the typical accumulation phase before the next parabolic rise.
Why it matters: Bitcoin has cycled through several parabolic bull run phases, each of which were accompanied by an accumulation period of range-bound price action. Bitcoin’s recent rise to $14K level means that it’s coiling up for the next major bull run, where investors would be keen to consider accumulating BTC.
PayPal and Crypto could spur $50 billion in retail payments by end of 2021
What: PayPal’s new service allows customers to buy, hold and sell crypto directly within the PayPal wallet. Customers will also be able to pay in crypto among PayPal’s existing network of 26 million merchants.
Why it matters: Despite controversy among crypto maximalists, PayPal’s new service will undoubtedly make crypto more friendly and practical to use among the mainstream. This “could easily double and reach $50 billion by the end of 2021” according to the Forbes article.
JPMorgan’s stablecoin head towards commercialization as the company’s confidence strengthens for blockchain
What: The JPM Coin stablecoin is set to enter its commercial phase in reducing cost and increasing efficiency for global payments.
Why it matters: JPMorgan processes more than $6 trillion per day in international wholesale payments. Having a conglomerate financial institution give the green light for blockchain provides a significant boost to the blockchain industry.
