The average value per transaction of Bitcoin (BTC) has managed to increase by 500% since July. A significant increase in institutional investments by firms such as MicroStrategy and Square and the support from PayPal seems to have contributed to this.
Bitcoin has experienced a 500% increase in average value per transaction since July. This has occurred amid a major bullish momentum for the main cryptocurrency.
The reversal of the stock market has been the determining factor in this new upward episode. The panic that seized the markets, following the statements of the International Monetary Fund (IMF), is another cause of the strengthening of the value of this cryptocurrency.
Bitcoin Experiences a 500% Increase, But Not in Price
The average value per transaction was about USD 25,000 last June, according to data from BitInfoCharts. The average currently stands at USD 151,000 per transfer.
In other words, the Bitcoin average value per transfer has increased by 500% in just about four months.
That is not the only thing that has surprised the Bitcoin community. There was a peak, which began on September 18th and lasted 48 hours, where the average value per transaction went from USD 105,062 to USD 151,779.
Compared to Ethereum, the current average value per transaction of Bitcoin is 190 times that of Ethereum.
Why This Increase in Average Value per Transaction Happens
One explanation for this is that Bitcoin is currently experiencing a significant increase in the institutional presence. This situation is capable of moving said amounts of money through the leading cryptocurrency.
This conclusion coincides with the announcement of the increase in investments in Bitcoin by firms such as MicroStrategy and Square.
However, data from BitInfoCharts regarding the number of new active addresses did not indicate a significant increase. In other words, the increase in operations is not due to significant growth in the number of new investors.
Bitcoin Also Gets a Push from PayPal
The leading cryptocurrency seems to have finally managed to overcome the USD 12,000 barrier once and for all. The new that PayPal would back Bitcoin has been the catalyst for this to occur.
Data from CoinTelegraph, Markets, Coin360, and TradingView confirmed the best day of Bitcoin in more than a year since its gains exceeded 7% in just 24 hours.
At the time of writing this article, Bitcoin is currently trading at USD 12,820, according to the CryptoTrend tool, Crypto Online.
The push from PayPal comes after it had announced its plans to support BTC and three additional altcoins: Ethereum, Litecoin, and Bitcoin Cash since next year.
There have been both positive and negative reactions to the news, but it certainly pushed the price of Bitcoin to a new level. It only remains to see if it will manage to resist.
Since its creation, the main cryptocurrency in the market has proven to be able to overcome its worst all-time lows. Besides, the increase in the number of institutional investments and the incorporation into international payment services like PayPal are signs of its growing acceptance.
By Willmen Blanco
