2 November 2024
Bitcoin Could Have Positive Impact On PayPal As Its Stocks Hit New High
The stocks of PayPal hit a new high on Monday that has outperformed Nasdaq and the broader U.S. stock market. From 12th November, the technology-focused Nasdaq has gained around 6.5%. At the same time, the broad S&P 500 Index of large-cap stocks is up by 3.5%.
PayPal’s entry into crypto is not only the reason for its outstanding performance but the merchant processor is well-positioned to capitalize on the growing adoption of digital assets. There are some analysts who believe bitcoin's higher price could have a positive effect on PayPal’s prospects.
On the other side, the payment processor is also influencing Bitcoin’s price in a positive way. As per data, PayPal could have filled as much as 70% of the newly mined bitcoin in the weeks leading up to its crypto platform going live in the U.S.
In a 2019 survey, 5000 people stated that 6.2% of Americans above the age of 18 own Bitcoin. Also, it added that 7.3% are planning to purchase BTC for the first time.
If these numbers are true, cryptocurrencies could have a positive impact on PayPal’s business.
The shares of PayPal have soured by 17% since 12th November, when the platform launched crypto trading for U.S. customers.
As per sources, PayPal is planning to launch its global crypto services in early 2021.
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