PayPal shares hit a record high on Monday, highlighting a period of strong performance compared to the Nasdaq and the broader US stock market.
The tech-focused Nasdaq has gained about 6.5 percent since November 12. The larger S&P 500 Index, which includes high-market value stocks, rose 3.5 percent over the same period.
PayPal shares barchart.com 3-Month Performance by
While entering the crypto industry is not the only factor behind PayPal’s excellent performance, the global payments giant is well positioned to profit from the growing prevalence of digital assets. Some analysts think the increase in the price of Bitcoin (BTC) will also have a positive impact on Paypal’s outlook.
There is also evidence that the payment giant is positively influencing the price of Bitcoin. According to available data, PayPal may have purchased 70 percent of newly created Bitcoins in the weeks before the crypto platform was launched in the United States.
Although estimates vary, in 2019, bitcoin owners make up 6.2 percent of the adult U.S. population, according to a study of 5,000 people. An additional 7.3 percent said they planned to buy Bitcoin.
If these rates are correct, cryptocurrencies could make a significant contribution to PayPal’s business. Revenue from The Square Cash App, for example, has skyrocketed since it made it possible to buy Bitcoin.
PayPal Holdings (PYPL) shares have risen 17 per cent since November 12, when the payment giant launched its crypto trading platform.