Bitcoin has exploded in recent weeks and showing no signs of slowing down. Over the past five weeks, the flagship cryptocurrency has rallied by more than 50% powering through the crucial $16,000 level. While Bitcoin price did plunge below the $16,000 level abruptly, traders quickly stepped in to defend the $16,000 level.
In recent weeks, pullbacks have acted as a crucial support level from where bulls have come in and bought more bitcoins, conversely pushing prices higher. The rally has come at the backdrop of an influx in capital into the Bitcoin market, which continues to fuel price spikes. Capital inflows have surged amid an increase in products for gaining exposure to the burgeoning sector.
In the wake of global economic uncertainty, institutional investors increasingly turn to digital currencies as an alternative investment. MicroStrategy has already invested more than $200 million in the crypto, followed by a $50 million investment in Bitcoin by Square.
PayPal adding support for the flagship cryptocurrency in its app is another development that continues to support the bullish action around the flagship cryptocurrency. The payment giant has already made it possible for customers in the United States to buy, sell, and hold Bitcoin. While Bitcoin purchases are limited at $20,000 a week, it is still much to accelerate mainstream adoption.
PayPal is poised to unveil more services in the coming days as it continues to embrace cryptocurrencies in its ecosystem. The service would be made available globally at the beginning of 2021. One of the services will allow Merchants to accept crypto as a form of payment.
Bitcoin Price Estimate
Buoyed by the spike in Institutional investor interest, the creator of the stock-to-flow model Plan has already doubled down on the Bitcoin price target. According to the firm, BTC has the potential to rally to the $100,000 to $288,000 level by December 2021. In contrast, Eric Wall, the Chief Investment Officer at Arcane Assets, has tabled a $1 million bet that Bitcoin won’t come close to within 50% of Plan’s target by 2025, let alone late next year.
In line with the Arcane Assets executive sentiments, there is growing sentiment that a potential pullback could be on the way after the recent price spike. The fact that it’s been fairly long since we saw a long red candle all but continues to fuel suggestions of a bitcoin price pullback. According to the Exchange Whale ratio, the exchange Whale ratio has already hit the 85% level, a level standard among dumps.
Bitcoin For Visa Processing
Separately, Peninsula Visa, a passport processing company based in California, has started accepting Bitcoin as a form of payment. The company will accept Bitcoin payment for select passport services. Some of the services that people will be able to pay for using bitcoin include passport renewals and name changes, including applications related to second passports.
Offering Bitcoin payment options for U.S State Department operations is a move in the right direction when it comes to cryptocurrency integration in the mainstream sector.