Last week, PayPal (NASDAQ: PYPL) announced it removed the waitlist to buy, hold, and sell cryptocurrency in the U.S., allowing all U.S. customers to purchase cryptocurrency directly from their PayPal accounts. The fintech firm said U.S. users will be alerted to the new feature in the upcoming days. The new feature was already partially available in the U.S. before, but PayPal had been onboarding interested customers with a waitlist. PayPal added it increased its weekly cryptocurrency purchase limit from $10,000 to $20,000 per week due to high initial demand from customers. PayPal also disclosed it will charge $0.50 on transactions up to $24.9, 2.3% from $25 to $100, 2% from $100.01 to $200, 1.8% from $200.01 to $1,000, and 1.5% on transactions over $1,000. To get the program started, PayPal said it is waiving fees until 2021, and there will be no fees for users to hold crypto in their accounts.
Here is the rest of the week in review:
Galaxy Digital announced Friday it acquired 2 firms as it seeks to become the go-to platform for institutional access to digital assets. The crypto merchant bank said it purchased DrawBridge Lending, a "white glove" service for borrowing and investing in digital assets, and Blue Fire Capital, a provider of liquidity for futures markets and digital assets. Galaxy Digital did not disclose the terms of the deals but noted the move would bring DrawBridge's over $150 million in third-party assets. Galaxy Digital said the acquisitions will help it further amplify its "strong position as a go-to trading desk in digital assets" and grow an innovative portfolio. Galaxy Digital also reported net income of $44.3 million for the third quarter, up massively from a net loss of $68.2 million in the same quarter last year. Volume at subsidiary Galaxy Digital Trading surged 75% to a record $1.4 billion, thanks to booming Bitcoin (BTC) prices.
Ray Dalio, the renowned billionaire founder and cochairman of Bridgewater Associates, the world's largest hedge fund, argued he sees 3 main problems with bitcoin and other cryptocurrencies that will limit their future, including the risk that governments will "outlaw" them if they start to become "material." In an interview with Yahoo Finance, Dalio said he expects more digitized versions of government-issued currencies in the future than Bitcoin and other cryptocurrencies for 3 reasons. He noted a lack of venues that accept cryptocurrencies for purchase easily. He emphasized Bitcoin and other coins are too volatile to be an effective store of wealth. Finally, he predicted that global governments would ban cryptos if they grow to be "material": "They'll use whatever teeth they have to enforce that. I don't think digital currencies will succeed in the way people hope they would." Dalio joins a prominent group of famous Wall Street investors who are bearish on crypto, including Warren Buffett of Berkshire Hathaway (NYSE: BRK.B).
Crypto prices rose slightly to $453 billion this week, taking a breather after the recent monster surge. For the majors, Ripple (XRP) and Bitcoin rose, while Bitcoin Cash (BCH), Chainlink (LINK), and Cardano (ADA) fell. In the top 100, the biggest losers were The Midas Touch Gold (TMTG), down 16%, Energy Wet Token (EWT), down 16%, and Augur (REP), down 14%. The biggest gainers were SushiSwap (SUSHI), up a whopping 88%, THORChain (RUNE), up 67%, and Curve DAO Token (CRV), up 63%. Next week traders will watch if Bitcoin breaks $16,000 convincingly.
The author owns a small amount of BTC.