Bitcoin rose past the US$29,700 barrier early Wednesday morning in Asia, gaining 2.02% in the previous 24 hours. Ether also saw a boost in value, rising by 1.61% to US$1,855.88. Notably, all ten of the biggest non-stablecoin cryptocurrencies had positive movement. Among them, Solana stood out as a forerunner, earning an almost 5% increase. This crypto market rise was fueled by PayPal’s recent announcement of a stablecoin tied to the US dollar on Monday. Following the announcement of China’s lackluster GDP data on Tuesday, global government bond rates fell significantly.
Simultaneously, the Forkast 500 NFT index surged in value due to higher trading volumes. However, futures for US stocks were noted to trade lower as a result of ratings agency Moody’s downgrade of numerous mid-size US banks.
Bitcoin and Ether Prices on the Rise
Bitcoin’s rise to US$29,764.75, as reported by CoinMarketCap, is a 0.41% weekly increase. In the early hours of Wednesday, the cryptocurrency temporarily surpassed the crucial barrier mark of US$30,000. Ether’s value increased by 1.07% week on week to US$1,855.88. Other top ten non-stablecoin cryptocurrencies saw favorable movement as well, with Solana’s SOL leading the pack with a 4.93% increase to US$24.19.
PayPal’s Stablecoin Boosts Crypto Sentiment
PayPal’s release of its USD-pegged stablecoin, known as PayPal USD (PYUSD), gave the crypto industry a substantial boost. This stablecoin enables US users to send funds to compatible external wallets, make customer-to-customer payments, and even buy foreign currencies with the token. The significance of this decision was highlighted by specialists such as Wilshire Phoenix’s William Cai, who stated that PayPal’s worldwide power is likely to dictate the future of stablecoin acceptance and usage.
Greta Yuan, head of research at VDX, a Hong Kong-based digital asset exchange, emphasized the potential of PayPal’s foray into the stablecoin area. While earlier attempts by big institutions were delayed by regulatory hurdles, she stated that current legislative advances and PayPal’s experience may pave the way.
Anticipation for SEC Approval
Cathie Wood, CEO of Ark Invest, has high hopes for the United States. SEC approves numerous spot-Bitcoin ETFs at the same time, citing successful ETF filings from asset managers such as BlackRock, Fidelity Investments, and Wisdom Tree. Galaxy Capital CEO Mike Novogratz forecasts fierce competition among Bitcoin ETF issuers to acquire market share once permits are granted, which would likely contribute to Bitcoin’s overnight rise of 3-4%. According to Matrixport’s Markus Thielen, there is a recurring trend of Bitcoin prices rising during US trading hours but falling during Asian trading hours. The SEC’s possible approval of a Bitcoin ETF offers the possibility of propelling prices higher.
Overall, the total crypto market capitalization increased by 1.71% in the past 24 hours, reaching US$1.18 trillion, while trading volume rose by 9.37% to US$36 billion.
