Dear Teroxx Community,
This week we saw a crypto-market that showed high volatility and a huge uptrend in Bitcoin!
Weekly overview
As usual, we are also providing detailed videos for those who want to delve deeper into the subject.
Latest crypto news
PayPal announced on Wednesday its entry into the cryptocurrency market. PayPal customers will be able to use cryptocurrencies to shop at any merchant in its large network starting from early 2021, the company said.
The payments will be settled through fiat currencies. The coins initially supported will include Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH) and Litecoin (LTC). The payments giant partnered with Paxos to deliver the service, and it obtained a conditional cryptocurrency license from the New York State Department of Financial Services, commonly known as the BitLicense.
In addition to cryptocurrency payments, PayPal users will also be able to purchase crypto directly through the app. PayPal will thus feature a cryptocurrency wallet, letting users buy, sell and hold crypto via the PayPal apps.
A report from JPMorgan’s Global Markets Strategy division discusses three bullish reasons for Bitcoin’s long-term potential. The main factor put forward by JPMorgan’s Global Markets Strategy division is Bitcoin’s competition with gold. First, Bitcoin has to rise 10 times to match the private sector’s gold investment. Second, cryptocurrencies have high utility. Third, BTC could appeal to millennials in the longer term.
Following the integration of crypto purchases by PayPal and the rapid increase in institutional demand, Bitcoin is increasingly being viewed as a safe-haven asset.
Technical term of the week
API Keys: These are used to enable trading without the need for a trader to log in to the account. This increases the security measures and statistics can be obtained via applications on platforms.
Crypto Market
The market was driven by news this week. After seeing a positive market and Bitcoin breaking through some resistance, the $12,000 hurdle was attacked. With PayPal’s confirmation that crypto currencies will be integrated in 2021, the market (especially in Bitcoin) picked up strongly! The price climbed over $13,000 and the market capitalisation increased by ~10% over the week. A kind of FOMO was created.
For a few days now and due to the low volume over the weekend, the market has “calmed down” and volatility has decreased. Some Altcoins saw smaller sales, while Bitcoin is still hovering around the $13,000 mark. Again, a further increase seems unlikely, considering the global pandemic development. Nevertheless a very strong week for Bitcoin!
Bullish outlook: If $13.000 can be held a new kind of FOMO could be likely. A monthly close above $13.000 was not seen for years and would drive the market bullish.
Bearish outlook: This news based run could end soon. Due to “Covid-19” we could see some profit takings and higher volatility to the down side. If we are losing $12.500 the market could face some serious sell-offs.
