• Wed. Jun 22nd, 2022

Bitcoin network overtakes PayPal in volume processed, eyes then overtaking Mastercard

  • The Bitcoin network’s processed volume has already surpassed PayPal, reaching $ 489 billion per quarter.
  • A recent report pointed out that there are three main factors that could allow BTC to reach Mastercard level volumes.
  • If the price of Bitcoin reached $ 245,000, the network’s volume could easily exceed that of Mastercard.

The world’s oldest decentralized cryptocurrency network, Bitcoin has already overtaken PayPal in terms of volume traded by dollar value. According to a recent report, the BTC network has processed nearly $ 500 billion per quarter this year.

When will Bitcoin’s “transferred value” exceed that of Mastercard?

Since the inception of the flagship cryptocurrency in 2009, the network has grown significantly, processing billions of dollars in transactions daily.

The Bitcoin network processed around $ 489 billion per quarter in 2021, beating PayPal’s record of $ 187 billion, with the payment company processing an average of $ 302 billion per quarter.

According to a recent report from Blockdata, Bitcoin is 27% of the way in terms of volume processed compared to Mastercard – a company founded in 1966 – with its network processing $ 1.8 trillion per quarter. Visa’s network processed an average of $ 3.2 trillion per quarter.

The report also suggested that Bitcoin could reach Mastercard and Visa level volumes depending on three factors, including the increase in the number of transactions, the average amount of BTC sent per transaction, and the surge in the price of the leading cryptocurrency. .

Blockdata noted that if Bitcoin increased its transferred value per transaction by approximately 260%, the network would process a volume equivalent to that of Mastercard. To reach Visa’s volume level, the average transaction value would need to increase by 540%.

If the price of Bitcoin reached $ 245,000, an increase of about 260%, the network would reach the volume of Mastercard. To reach Visa’s volume level, the price of BTC would need to increase to $ 435,000, an increase of 540%.

Given the current growth rate in 2021, Blockdata has suggested that the Bitcoin network could overtake Mastercard volumes as early as 2026.

Bitcoin price aims to reach $ 60,000

The price of Bitcoin has attempted to revive the recovery after falling below $ 56,000. While continuing to trend in an ascending parallel channel on the daily chart, BTC will likely face its first hurdle at the 50-day Simple Moving Average (SMA) at $ 60,601.

The dominant technical model suggests that since the price of Bitcoin was able to hold above the lower channel limit, the bulls may be aiming for the next target on the upper trendline above $ 80,000. However, additional resistance may appear before BTC can reach the bullish target.

The next hurdle for the price of Bitcoin is at the 21-day SMA at $ 61,432. Further headwinds may appear at the 78.6% Fibonacci retracement level at $ 63,062 and then at the midpoint of the dominant chart pattern at $ 66,365, coinciding with the resistance line given by the reversal indicator. dynamics (MRI).

BTC / USDT Daily Chart

However, if the price of Bitcoin falls below the 61.8% Fibonacci retracement level at $ 58,045 with increased selling pressure, BTC could drop to the 50% retracement level at $ 54,520 thereafter.

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