Menu

Bitcoin Rises to a 2-Year High

Plus500 | Wednesday 28 October 2020

Bitcoin (BTCUSD) hit a high during Wednesday’s trading, surpassing $13,840 against the USD. This is a level that cryptocurrency traders have not seen since the start of 2018. 

Bitcoin

This new peak follows last week’s news from payment method giant PayPal (PYPL) as they will begin allowing Bitcoin to be used in their digital wallet. Allowing its 346 million users easy access to the digital currency has large implications for Bitcoin beyond the immediate coin’s valuation.

Being able to purchase from 26 million global sellers using cryptocurrencies will increase cryptocurrency access to individuals who may have never considered using digital currencies as a form of payment. Beyond Bitcoin, PayPal intends to slowly roll out acceptance of Ethererum’s Ether(ETHUSD), Litecoin (LTCUSD), and Bitcoin Cash (BABUSD), which was created after one of Bitcoin’s hard forks. 

Institutions Look to Bitcoin

More mainstream access to digital coins has lifted Bitcoin’s valuation, propped up by attention from Square (SQ), Fidelity, and others. While there are differences between cryptocurrencies, the decentralized nature of these coins means that they can act as a store of value that is not directly connected to any central bank. 

Questioning PayPal

Some believe that Paypal allowing for its customers to complete transactions using cryptocurrencies is concerning for multiple reasons. 

The first concern is, PayPal has been an opponent of Bitcoin in the past. The second reason is that during the initial rollout of this technology, users will not be allowed to keep their own security keys or transfer digital currencies outside of the PayPal network, questioning whether they can have free access to their assets.

It is unclear if these concerns will change, but traders are anticipating whether this attention from major financial institutions will influence the price of digital currencies over time. 


Get more from Plus500

Expand Your Knowledge

Videos & Articles help you expand your trading knowledge.

Prepare Your Trades

Our Economic calendar helps you explore global market events.

Trade Without Surprises

Understand the full costs of your trades now for better expense management later.


This information is written by Plus500 Ltd. The information is provided for general purposes only, and does not take into account any personal circumstances or objectives. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, if necessary, seek professional advice. No representation or warranty is given as to the accuracy or completeness of this information. It does not constitute financial, investment or other advice on which you can rely. Any references to past performance, historical returns, future projections, and statistical forecasts are no guarantee of future returns or future performance. Plus500 will not be held responsible for any use that may be made of this information and for any consequences that may result from such use. Hence, any person acting based on this information does so at their own discretion. The information has not been prepared in accordance with legal requirements designed to promote the independence of investment research.

Need Help?
24/7 Support