Fidelity, Square, & Coinbase Launch Bitcoin Trade Group
Blog: Visa Open For Crypto Business As Indicators Going On Bitcoin
After a strong dip in prices across the cryptocurrency market last week, the last few days of March saw the recovery of most coins as well as some decent gains across the market. The world’s largest digital coin, Bitcoin, saw itself back near its all-time-highs as major institutions announced crypto offerings — namely from Visa and PayPal. The price of Bitcoin managed to climb 6% from Monday through Wednesday, happily landing above the $58,000 mark at the time of publishing. This pushed Bitcoin’s market capitalization to $1.1 trillion and gains to $144 billion since last Thursday’s stark correction in pricing.
Visa Says Hello to Bitcoin in Historic Launch
This recovery in pricing coincided with perhaps one of the biggest cryptocurrency votes of confidence from traditional institutions as the world’s first major payments network Visa announced that it will allow the use of the currency USD Coin (USDC) to settle transactions on its network. Circle’s USDC is a stable coin whose value is pegged to the US Dollar.
Partnering up with digital asset bank Anchorage, Visa is completing these transactions by having Crypto.com (a crypto platform) send USDC to Visa’s Ethereum address. This is unlike previous transactions during which digital currencies required conversion to fiat money before they could be used. Speaking on the matter, the head of crypto at Visa Cuy Sheffield said, “We see increasing demand from consumers across the world to be able to access, hold and use digital currencies and we’re seeing demand from our clients to be able to build products that provide that access for consumers”.
Yet another sign of the trend of growing acceptance of cryptocurrencies by traditional financial markets, this piece of news set the cryptocurrency markets on a price run. As previously mention, coinciding with this release the price of Bitcoin surged 6% to above $58,000. Similarly, the price of Ether also saw impressive growth of 8% to land over the $1,800 mark.
PayPal Continues Commitment to Crypto in Newest Offering
More mainstream institutional adoption of crypto came from PayPal this week as they announcedthat U.S consumers will be able to covert their Bitcoin, Ether, Litecoin, and Bitcoin Cash into US Dollars. Launching “Checkout with Crypto,” this product allows customers to use their cryptocurrencies on PayPal at check out — just as the name suggests. In the press release making the announcement, the president and CEO of PayPal Dan Schulman said, “As the use of digital payments and digital currencies accelerates, the introduction of Checkout with Crypto continues our focus on driving mainstream adoption of cryptocurrencies, while continuing to offer PayPal customers choice and flexibility in the ways they can pay using the PayPal wallet”.
This opens the door for cryptocurrency payments for the millions of users on the platform, thus creating a massive new audience for the digital dollar. This ultimately introduces a new way for businesses to get paid, and for customers to pay, adding an extra layer of utility that Bitcoin and co had previously lacked. It is a major step of integrating crypto payments is primed to boost the use of cryptocurrencies in everyday commerce, signaling further seamless adoption.
Visa and PayPal’s move comes at a time when major financial institutions like JP Morgan, Morgan Stanley, and Goldman Sachs are all filing to launch Bitcoin Exchange Traded Funds, signaling a deep dive into the world of crypto by the most traditional financial corporations.
Experts Anticipate Upcoming Price Run
Also happening in tandem, experts have reason to believe that now is the time to go “all-in” on Bitcoin. One expert in particular Kin Young Ju, the head of the blockchain analytics platform Crypto Quant, is examining the on-chain supply and demand indicators which suggest that the market is primed for a price run.
While there had previously been too many bitcoin holdings in USD, the rise of USDC has placed more stable coin holdings across exchanges. Additionally BTC holdings have decreased and continue to do so, thus improving the market’s supply and demand. Ju believes that this is the time to go “all in” on Bitcoin, as it is a pivotal moment during which a major price run could take place.
Visa and PayPal have both been at the forefront of what is being referred to as a digital payment revolution for awhile, consistently looking for ways to extend crypto products to their customer bases. As traditional financial companies continue to embrace Bitcoin and other crypto, we find ourselves at a pivotal moment in cryptocurrencies’ history. Bitcoin, Ether, and the like are no longer simply digital assets that you buy, hold, or dabble in, rather they are becoming a source of funding for many.
These fresh institutional adoptions have only served to further cement cryptocurrencies as legitimate, and have given traders and investors a renewed appetite for risk taking following a brutal market shakeout last month when Bitcoin dipped below the $50,000 mark.
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