Bitcoin: new 2020 record, PayPal now accepting crypto payments

Bitcoin has been in trouble recently. Yet, it peaked at $13,249 in yesterday's Asian session, and Bitcoin enthusiasts have already talked about reaching $100,000 next year.

To be fair, Bitcoin has been experiencing some unusual bullish behaviour lately. After hitting $12,000 this summer, it has fallen back to $10,000, in line with what the U.S. stock market has done and what the USD has done as well.

From $10,000, however, the positive correlation with risk-on/risk-off broke down. Bitcoin maintained its levels at each downward movement in risk and rose dramatically at each upward movement in risk. As a result, it reached a new high this year with an increase of over 29% over the last month.

PayPal now accepting crypto payments

The culprit responsible for Bitcoin's sharp rise is PayPal. The online payment giant has announced that it will accept crypto payments. This news caused problems for sites such as Kraken, a crypto exchange platform, as individual investors rushed to buy Bitcoins and other crypto-currencies.

However, PayPal's announcement has a catch: the crypto used in PayPal transactions cannot be transferred to other accounts, whether or not they are PayPal accounts. In other words, these are only entries in a PayPal database, and not something to do with Bitcoin in general. Nevertheless, attention and awareness of crypto-money will increase, and due to increased popularity, their price may also rise.

Earlier in the article, reference was made to a possible value of $100,000 for Bitcoin in less than a year. One of the most popular models that has been tracking the evolution of Bitcoin since its inception, S2F, predicts that this is to be expected. Whether this is correct or not, we will know soon.

Bitcoin's $10,000 jump is also part of an increased adoption by large public companies. One of them, MicroStrategy, announced a few months ago that it had invested more than $150 million in Bitcoin. Bitcoin's sharp rise yesterday to its highest level in 2020 also boosted MicroStrategy's share price by over 5%.

Bitcoin's 29% appreciation in less than a month is exactly what retail investors are here for. But it is also fuelling regulatory concerns related to rapid system enrichment, price volatility due to increased volatility, and delays in the implementation of regulatory frameworks.

Is Bitcoin's decoupling from the dollar's main trend real? This is the question that traders need to ask themselves.