- Bitcoin climbed to 8% higher on Wednesday after PayPal revealed it would soon allow users to buy, sell and hold the popular cryptocurrency.
- This jump pushed bitcoin to an intraday high of $ 12,817.17, its highest level since July 2019.
- Wednesday’s announcement from PayPal marks the latest move by a financial services giant to accept cryptocurrency.
- Michael Novogratz, billionaire investor and bitcoin bull, called PayPal’s move “the biggest crypto news of the year.”
- Watch Live Bitcoin Trading Here.
Bitcoin climbed to 8% on Wednesday after PayPal announced it would open its service to cryptocurrency buying and selling.
The rally placed bitcoin at an intraday high of $ 12,817.17, well above its previous 2020 high of $ 12,473. Wednesday’s spike marks Bitcoin’s highest level since July 2019.
The world’s largest cryptocurrency has grown over 11% this week alone. Bitcoin broke through the key $ 12,000 level on Tuesday and news from PayPal is adding more fuel to the recovery.
PayPal said on Wednesday that it would allow its users to buy, hold and sell cryptocurrency from their accounts starting within a few weeks. More than 26 million traders using the platform will also be able to accept cryptocurrencies as a source of funding, according to a press release.
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PayPal plans to expand functionality to its Venmo app and international markets in the first half of next year.
The company’s acceptance of cryptocurrencies comes after other big financial names embraced the previously ignored asset class. Square raised 4,709 bitcoins for $ 50 million earlier in October, saying bitcoin may become “a more ubiquitous currency” in the future. Fidelity launched its first bitcoin-focused fund in August, allowing its wealthiest clients to support volatile tokens.
Billionaire investor Mike Novogratz hailed PayPal’s move on Wednesday, calling it “the biggest crypto news of the year.” The former hedge fund manager is managing director of Galaxy Investment Partners, a crypto-focused investment firm.
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Novogratz has long pushed for widespread adoption of digital currencies, and said in a tweeter that PayPal’s stock marks an “exciting day” for cryptocurrency advocates.
“All the banks are now going to be in a race to serve crypto. We crossed paths with the Rubicon people, ”he said.
The coin still has a long climb before it resumes its 2017 high of nearly $ 20,000. Bitcoin traded at $ 12,714 at 11:05 am ET on Wednesday, up 76% since the start of the year.
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