The price of the main cryptocurrency is climbing to higher and higher levels, approaching 16.5 thousand USD. Thus, the bitcoin valued in USD was the most expensive since January 2018. Only since the beginning of the year, the most popular cryptocurrency seems to gain as much as 125 percent.
One of the reasons for the recent price increases in BTC is to be the implementation by PayPal Inc. of its own crypto platform for all American customers. Thanks to this feature, users in the USA will be able to buy, store and sell cryptocurrencies within the PayPal application. The company offers initial support for bitcoin, ethereum, bitcoin cash and litecoin. According to Statista.com, in the second quarter of 2020, there were 346 million active PayPal accounts worldwide, which is a 21-percent increase year-on-year. This only shows the potential scale of access to the popular cryptocurrencies, which may translate into an increase in their popularity, but also, and above all, their use in everyday transactions made by payments through PayPal.
The Arcane Research report, in turn, shows that the total value of bitcoin trading on the exchanges increased by more than 270 percent in the last month and is at its highest level in 2020. The seven-day average turnover came close to $3 billion. The growing value may show that BTC's interest is growing. Interestingly, the number of open interest on the Chicago CME exchange, which offers bitcoin contracts, has also increased. On a weekly basis, the number of open interest increased by 169 percent. The value of open contracts reaches almost its highest level of August 17 this year. At that time it was 948 million dollars.
This may be due to the growing number of so-called big players on the futures market. They are exposed to over 25 bitcoins through futures contracts. According to Arcane Research, their number increased from about 40 institutions at the beginning of the year to 99 in the first week of November. It seems that the words of American billionaires were not without significance for the growth of BTC's popularity among institutional investors. Paul Tudor Jones and Stanley Druckenmiller, who interviewed the CNBC station on November 9, spoke favorably about bitcoin.
However, it should be remembered that this is a very volatile market and corrections of 20-30% are not unusual here. Therefore, it is worthwhile to first get acquainted with the characteristics of the market, which seems to attract the attention of more and more important investors and more and more money.
Daniel Kostecki, Chief Analyst Conotoxia Ltd.
Materials, analysis and opinions contained, referenced or provided herein are intended solely for informational and educational purposes. Personal opinion of the author does not represent and should not be constructed as a statement or an investment advice made by Conotoxia Ltd. All indiscriminate reliance on illustrative or informational materials may lead to losses. Past performance is not a reliable indicator of future results.
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