PayPal's stablecoin fails to excite Bitcoin

Bitcoin prices have been moderating lower since mid-July, now trapped between two simple moving averages (SMA), namely the 21-day and 100-day SMAs.

Even the overnight news of PayPal launching a stablecoin, called PYUSD, failed to spark notable excitement in Bitcoin.

PYUSD is set to be pegged to the US dollar and backed by USD deposits, short-term Treasuries and other cash equivalents.

This is a major development – the first by a large financial company –and could boost the usage of payments made via digital tokens.

Crypto’s woes still palpable

Bitcoin’s (and other major cryptos) lacklustre response to PayPal’s announcement is likely due to the fact that the crypto sector still has to wade through ongoing uncertainties.

The crypto world is still contending with the following:

• a tightening net from authorities
• an uncertain regulatory outlook
• lack of liquidity
• continued fallout from 2022’s high-profile implosions, etc.

The above list should be enough to explain the cautious stance adopted by crypto bugs of late.

Still, there could be major developments in store that could boost Bitcoin prices, if things take a favourable turn for crypto aficionados:

• End-September 2023: expected date for court’s decision in Grayscale’s lawsuit against the US Securities and Exchange Commission (SEC).
   
• December 2023: CBOE’s lawsuit against SEC
   
• Jan – March 2024: Deadline for SEC’s decision on Bitcoin ETF filings

 

The potential catalysts for major crypto price moves are set to be a few months out, which could test HODL-ers patience in the interim.

Positive outcomes could see Bitcoin skyrocketing past its year-to-date high of $31,871.31.

Should the above decisions by US courts or the SEC go against the crypto community, Bitcoin may well go crashing down in the months ahead to the $20k mark last seen in March.