Bitcoin hits $50,000 as PayPal extends crypto services to the UK

Bitcoin hits $50,000 as PayPal extends crypto services to the UK
“PayPal employee shuttle” by Richard Masoner / Cyclelicious is licensed under CC BY-SA 2.0

Key takeaways

  • PayPal extended its crypto-services to the UK customers.
  • Bitcoin gains just enough to cross the $50,000 barrier.
  • Santiment analytical platform has a positive outlook on the future price action.

YEREVAN (CoinChapter.com) – Bitcoin (BTC) prices went above $50,000 for the first time since May 15 and traded at $50,249 hours ahead of the European session Monday.

What pushed BTC higher?

The latest spike came in the wake of PayPal’s decision to launch a crypto payment service for its UK customers. In detail, The new feature would allow its PayPal users to hold, buy and sell digital assets starting this week, thereby becoming the payment service giant’s first international crypto expansion.

The company adopted crypto transactions at home in the US back in October 2020. Then in March 2021, launched a crypto checkout service.

Jose Fernandez da Ponte, the general manager for blockchain services, crypto, and digital currencies at PayPal, commented on the new development with an optimistic outlook.

“It has been doing really well in the U.S., we expect it’s going to do well in the U.K.”

said the executive.

The new service is going to work within the application only. So, at least for the time being, users won’t transfer their crypto assets outside the PayPal wallets. However, they have a new “entry point” for easier access to the crypto sector.

PayPal’s UK crypto wallet will allow holding, selling, and buying Bitcoin, Bitcoin Cash, Ethereum, and Litecoin with a £1 minimum.

With more than 403 million customers worldwide, the crypto-expansion to the UK signifies a broader adoption of digital currencies.

“We are committed to continuing working closely with regulators in the UK, and around the world, to offer our support— and meaningfully contribute to shaping the role digital currencies will play in the future of global finance and commerce,”

added Mr. de Ponte

Also read: Bitcoin’s latest bullish catalyst emerges out of China’s anti-rich crackdown proposal.

Bitcoin daily chart

The flagship cryptocurrency climbed 5.7 percent in a week and only 1.86 percent in the past 24 hours. However, the small advance was enough to cross the $50,000 threshold, albeit not entirely confident. The digital asset retested the $48,050 support level twice in the past two days, consolidating just above the line.

Bitcoin daily price chart
Bitcoin daily price chart. Source: BTCUSD on TradingView.com

The relative strength index (RSI: momentum indicator; purple graph at the bottom) came in at 70, the upper margin of the “adequate” range. When the RSI leaves the 30-70 field in either direction, the traders see it as a call for action.

Also read: Coinbase stock emerges as Bitcoin’s greatest diversifier; here’s why

If they perceive the token as oversold (at RSI<30), they could go in to “buy the dip.” However, if the RSI climbs higher than 70, traders could withdraw their bets to secure the profit and avoid betting on an overbought digital asset, leading to a correction. Nonetheless, some experts have an optimistic outlook on the future price.

The Santiment crypto analytics service linked the recent uptrend with the growing development activity. Based on the increasing subscriptions on GitHub developers’ hosting platform, Santiment concluded that it is a “promising sign” for the digital asset.

Bitcoin development activity
Bitcoin development activity. Source: Santiment

PayPal’s comprehensive crypto services to the UK market fueled Bitcoin’s uptrend. As a result, the alpha cryptocurrency crossed the $50,000 psychological resistance margin and stood at $50,249 in Monday’s Asian-Pacific session.

Also read: Swedish Government to pay $1.5M in Bitcoin to a convicted drug dealer.

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