The sell-off is also blamed on economic reopening and bullish sentiments about value stocks that are likely to benefit from easing restrictions. Nevertheless, the 20% share price sell-off in the last month has created an attractive buying opportunity for long-term investors. This is because shares of the payment technology company are likely to bounce back significantly on the back of robust growth in bitcoin revenue, which would help expand the high double-digit revenue growth trend into 2021 despite the negative impact of easing social distancing policies.
PayPal is set to earn billions from bitcoin revenue
The online payment transfer giant has benefitted strongly from its strategy of permitting its users to buy, sell and hold bitcoin and a few other cryptocurrencies. In the December quarter, PayPal customers who are engaged in crypto transactions have logged into PayPal twice as much as before. The company also saw a stunning growth in new activate accounts and transaction revenue, attributed mostly to crypto adoption. According to Mizuho Securities analyst Don Dolev, PayPal is likely to generate $2 billion in bitcoin revenue by 2023, with expectations for 20% more than growth in 2021.
Bitcoin trading volume explodes
On the other hand, Bitcoin trading volume has been increasing at an immense pace. Data compiled by Finbold analysts show that in 2021, Bitcoin trading volume accounts for almost 40% of the average daily gold trading volume. It is a whopping percentage having in mind that bitcoin’s market capitalization accounts for just 9% of gold’s $10.99 trillion. It is an evident indicator that investors are currently more speculative about bitcoin.
