Since the purchase of Bitcoin, the share price of global payment platform PayPal has soared 17%

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PayPal’s stock price hit a record high on Monday, putting an end to its strong performance relative to the Nasdaq and the broader US stock market.

Since November 12, Nasdaq, which is dominated by technology stocks, has risen about 6.5%. In the same period, the S&P 500 index, which covers large-cap stocks, rose 3.5%.

3-month performance of barchart.com’s PayPal stock

Although PayPal’s entry into the cryptocurrency market is not the only catalyst behind its outstanding performance, PayPal is fully prepared to take advantage of the growing popularity of digital assets. Some analysts even speculate that the rise in Bitcoin (BTC) prices may have a positive impact on PayPal’s prospects.

There is also evidence that PayPal may have a positive impact on the price of Bitcoin. Recent industry data indicates that PayPal may have purchased 70% of the newly mined BTC in the weeks before its encryption platform went live in the United States.

Although estimates vary from one party to another, a survey of 5,000 people in 2019 showed that 6.2% of Americans over the age of 18 have more than BTC. The survey shows that another 7.3% plan to buy BTC for the first time.

If these numbers are credible, cryptocurrency may have a positive impact on PayPal’s business, because more people tend to use PayPal as an entrance to the crypto market. A typical example is: Since allowing Bitcoin purchases, Square’s Cash App revenue has surged. In fact, nearly 80% of Cash App’s third-quarter revenue came from fees charged to Bitcoin buyers.

Since November 12, when online merchant PayPal Holdings (PYPL) launched an encrypted trading platform for eligible US customers, its stock price has soared 17%.

PayPal plans to launch its global encryption service in early 2021. Dan Shulman, CEO of PayPal, claimed that it is only a matter of time before PayPal supports the Central Bank Digital Currency (CBDC).

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