Bitcoin Surpasses $50,000 as Cryptocurrencies Rebound

Bitcoin Surpasses $50,000 as Cryptocurrencies Rebound
TradeGM Analysis date_range August 25th, 2021

On Sunday, Bitcoin surpassed $50,000, reaching a 3-month-high. The cryptocurrency has yet again caught the rebound momentum after having experienced a sell-off. 

Bitcoin had hit an all-time high in April, crossing the $64,000 milestone. However, in June and July, the crypto coin dipped below $30,000 as the market turned bearish. 

Now, the market sentiment has changed again. Since mid-July, cryptocurrencies have been on the rise again. The positive push comes after a few important announcements.  

Coinbase Acquiring Cryptocurrencies

Last week, one of the largest crypto exchanges in the world, Coinbase, said it would invest $500 million towards a diverse portfolio of crypto assets. The board of directors additionally approved allocating 10% of all profits into the same portfolio moving forward. 

Coinbase will become the first publicly traded company to hold a variety of crypto assets on its balance sheet. Reportedly, in addition to Bitcoin, the company will also hold Ethereum, Proof of Stake assets, DeFi tokens, and many more. 

In a company blog post, Coinbase said, “We believe in the cryptoeconomy, a future where economic transactions — buying, selling, spending, earning — will be based on crypto assets. Our products strive to make that vision a reality by making crypto trusted and easy to use for customers around the world.” 

PayPal Launching a Cryptocurrencies Platform 

On Monday, popular payments provider PayPal announced that it is launching its cryptocurrencies service in the UK. This marks the company’s first international expansion of PayPal crypto product since it launched in the US the previous year. 

“It has been doing really well in the US,” explained Jose Fernandez da Ponte, PayPal’s general manager for blockchain, crypto and digital currencies. “We expect it’s going to do well in the UK.” 

PayPal’s crypto service lets customers buy, sell, and hold Bitcoin, Bitcoin Cash, Ether, or Litecoin. Besides that, users will also be able to track real-time crypto prices and have access to educational content. 

This move puts PayPal in direct competition with UK fintech firm, Revolut. Neither of the platforms support moving crypto assets to third party wallets; however, Revolut is experimenting with a feature that allows users to withdraw Bitcoin into their own personal Revolut wallet.  

Final Thoughts 

Cryptocurrencies come with a heap of concerns regarding price volatility, consumer protection, illegal transactions, money laundering, and many others. However, this isn’t stopping them from slowly but steadily penetrating the mainstream. Facebook, Tesla, and Mastercard are only but a few of the companies that have made strides towards embracing the cryptoeconomy. 

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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.42% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. X