PayPal will take a very important step for bitcoin. How the price of the coin will react

Over the past two years, several landmark events have taken place in the world of cryptocurrencies, which, contrary to expectations, almost did not affect the quotes. In the case of PayPal, it may be the same, but the rise in the price of digital money is not always the main thing

In the field of cryptocurrencies regularly occur events, after which predict a new rally of bitcoin and the renewal of the historical maximum of value. Now the community expects PayPal to add digital money support in the coming months.

CoinDesk sources said that customers of the service will receive wallets for cryptocurrency storage, as well as the opportunity to buy and sell it directly through PayPal and its company Venmo. New features are expected to appear in the next three months or earlier. The company did not confirm or deny these rumors.

Last November, PayPal withdrew from the Libra Association. The CEO of the payment system stressedthat it was decided to abandon the creation of the Libra ecosystem in favor of its own development. Even earlier, in May 2019, it became known that the company is developing in the field of cryptocurrencies and blockchain.

And now, in mid-June 2020, the service continued to expand the staff. According to Cointelegraph,PayPal is looking for a technical director for crypto development. It will create and support crypto products/functions that are responsible for improving system availability, performance, and scalability. The company has also published a vacancy for blockchain developers who want to join the research division.

The result does not live up to expectations

According to the survey in the Twitter account of the BTCC trading platform, 62% of respondents believethat after PayPal adds the function of buying and selling cryptocurrency, a new bitcoin rally will begin. In fact, the community reacts this way to every landmark event, expecting an explosive rise in the value of the first cryptocurrency.

Almost always the result does not live up to expectations. For example, this year the bitcoin network was halving. The miners' reward for the mined block was halved to 6.25 BTC. Many representatives of the crypto community believed that immediately after that the asset rate should increase sharply. However, in the last month bitcoin is trapped in a narrow price corridor. Cryptocurrency is traded in the range of $9000-10,000, now its average market price is $9600.

The most important event of the last year was the launch of the derivative platform Bakkt. It was expected that through it the cryptocurrency market will start to receive large sums from investors of the institutional level, which will positively affect the rate of bitcoin. After the start of work on September 29, 2019, the value of the asset began to decline, by December it fell by almost 30%, to $7000, and in March 2020 set a local minimum of $3800.

"The news about PayPal is positive, but it will not affect the exchange rate of bitcoin and other cryptocurrencies. Cryptocurrency transactions are good, but first you need to increase confidence in the cryptocurrency and that regulators stop "nightmare" them, as well as block promising startups. When confidence in the cryptocurrency increases, then sellers will start accepting payments in bitcoins, and this will increase interest in payPal service. This is an expected event. Everyone wants to be the first," explained Vladislav Antonov, an analyst at Alpari.

Artem Deev, head of the analytical department of AMarkets, takes a different opinion. According to him, the addition of cryptocurrency support in payPal service can lead to a short-term increase in the value of bitcoin by 20-35%, then the asset will return to the usual range of $9000-10,000.

"Everything will depend on when the project will be launched and what the epidemiological situation in the world will be. The aggravation of the pandemic may affect the decision of investors," concluded Deev.

Fundamental factors are more important than speculation

In mid-March, the value of bitcoin in two days collapsed by 50% amid economic shocks due to the spread of coronavirus infection COVID-19. Now the correlation between the quotes of THE BTC and the U.S. index of the S'amp;P 500 is again at the level of historical highs. The dependence of the cryptocurrency price has increased along with the level of fear and uncertainty in the stock market.

Oleg Abelev, an expert of the investment movement "Lemon for Tea" recalled that earlier there were various ambitious projects when the cryptocurrency tried to enter the traditional financial and market instruments, but this did not end there. For example, the SEC's long-awaited approval to issue an ETF for bitcoin was never received, and the Telegram Open Network project with its own Gram tokens was forced to close.

"If the news about PayPal does not become another duck or a snout, it can positively affect the value of not only bitcoin, but also many cryptocurrencies. But I would not call this event expected, because I am skeptical about all the links of the traditional market with cryptocurrency," Abelev added.

Most experts believe that the addition of the function of buying and selling cryptocurrency in PayPal will have a positive impact on the bitcoin exchange rate. However, digital money remains in a difficult position in terms of regulation, and many even the most anticipated events end up unnoticed in terms of quotes. The main thing is that over time the industry becomes more developed, now there is less and less doubt that cryptocurrencies will remain for a long time, and the improvement of fundamental factors allow to look positively at the future of a new type of assets.