Tuesday 30 March 2021 1:12 pm

Visa and PayPal give Bitcoin a boost

Plans by finance giants Visa and PayPal to set foot in the cryptocurrency market have given cryptocurrency markets a shot in the arm.

Bitcoin and a raft of altcoins (cryptocurrencies other than Bitcoin) were left rising in value following announcements from the two institutions.

Visa revealed last night that it was laying down the groundwork for future cryptocurrency acceptance, and PayPal also disclosed it was looking to put crypto into its payment structure, albeit just for US customers at present.

News of the two projects was embraced widely by the crypto community – a sentiment reflected in the markets as green candles erupted across the board.

Not that a shot in the arm was required. Bitcoin and its crypto cohorts were already looking strong after a weekend of consolidation that saw it begin the week above $55,000 following a series of potential hazards that looked determined to drive its value below $50,000.

A huge options expiration on Friday had given Bitcoin (BTC) some minor jitters, but it barely registered quite like the massive correction some analysts were predicting. The expiry came on the back of a week of volatility which failed to kick the barstool from under a seemingly content crypto market.

Welcome news for investors

The survival of such a test will come as welcome news for investors and traders who will have been looking for signs of endurance.

Those signs are now beginning to show through as BTC again moves towards $60,000 and within reach of surpassing the all-time-high of $61,701 set only weeks ago.

On Bitcoin’s coattails, Ethererum (ETH) is also riding high above $1,840 and within touching distance of its ever-present psychological line of $2,000. Visa’s faith in the Ethereum blockchain for its latest project won’t be doing its native currency any harm.

Cardano’s sweetheart ADA is also enjoying its month-end rally, with a sizeable one-day rise on the cards. Binance’s much-lauded BNB was also a stand-out performer, enjoying an eight per cent rise to $297.

Few digital assets experienced stagnant or negative activity following the narrative from Visa and PayPal and, as no further announcements from institutions are anticipated in the run up to Easter, price movements are expected to remain buoyant over what is traditionally a period of low volume.