Bitcoin rebounded on Tuesday, following the news that Paypal was launching a USD stablecoin on the ethereum blockchain. The company hopes the move will bridge the gap between fiat and cryptocurrencies for all of its stakeholders. Ethereum was marginally higher today.
Bitcoin (BTC) was back in the green on Tuesday, as the cryptocurrency made marginal gains during today’s session.
The move came as Paypal announced its USD stablecoin, which will be hosted on the ethereum blockchain.
Following the news, CEO Dan Schulman said: “Our commitment to responsible innovation and compliance, and our track record delivering new experiences to our customers, provides the foundation necessary to contribute to the growth of digital payments through Paypal USD.”
BTC/USD rose to a peak of $29,402.65 on the news, following a low of $28,724.14 the day prior.
Today’s peak sees bitcoin trade at its highest point since last Wednesday, when it was last above $30,000.
Tuesday’s rally has also brought the 10-day (red) moving average to the cusp of an upwards crossover with its 25-day (blue) counterpart.
Ethereum (ETH) rose marginally after the Paypal news, with price moving away from a recent support point.
Following a low of $1,804.72 to start the week, ETH/USD jumped to an intraday high of $1,836.06 on Tuesday.
Despite the slight rise in price, ethereum continues to trade below a recent resistance level of $1,850.
A positive for bulls, however, comes as the 14-day relative strength index (RSI) broke out of its ceiling at the 43.00 mark.
Currently, the index is tracking at a reading of 43.88, with the next resistance zone near the 50.00 point.
In the event this target is reached, ETH will likely be back above $1,900.
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Will more companies follow Paypal in launching stablecoins? Leave your thoughts in the comments below.