Bitcoin has surged past the $13,700 mark as November 2020 opens with a wave of bullish momentum driven by mainstream financial adoption. The world’s largest cryptocurrency is riding a powerful rally that has seen its price climb more than 27% in October alone, with PayPal’s historic entry into the crypto market serving as the primary catalyst for the latest leg up.
TL;DR
- Bitcoin trading above $13,700 on November 1, 2020, up 27.7% in October
- PayPal launched crypto buying, holding, and selling for 300+ million users
- NYDFS granted PayPal the first-ever “conditional BitLicense” in partnership with Paxos
- Square purchased $50 million in Bitcoin, allocating 1% of total assets to BTC
- Grayscale Bitcoin Trust (GBTC) inflows accelerating, reaching $10.8 billion valuation
PayPal’s Landmark Crypto Move
The most significant development propelling Bitcoin’s November rally is PayPal’s official entry into the cryptocurrency space. On October 21, 2020, PayPal announced a new service enabling its more than 300 million active users to buy, hold, and sell cryptocurrency directly through their PayPal accounts. The initial rollout supports Bitcoin, Ethereum, Bitcoin Cash, and Litecoin.
The New York Department of Financial Services (NYDFS) granted PayPal the state’s first “conditional BitLicense,” requiring the company to partner with an existing BitLicense holder. PayPal selected Paxos Trust Company as its licensed service provider to execute cryptocurrency trades on its platform. This regulatory approval marked a watershed moment for crypto legitimacy in traditional finance.
While the initial functionality is somewhat limited — users cannot send crypto to other wallets or use it for peer-to-peer payments yet — PayPal has outlined ambitious plans. The company expects to enable crypto payments at its network of 26 million merchants by early 2021, with consumers able to instantly convert cryptocurrency to fiat at the point of sale with no additional fees. Notably, PayPal is not charging any transaction fees for crypto purchases through the end of 2020, removing a significant barrier for newcomers.
Square Doubles Down on Bitcoin
PayPal’s move followed another major institutional endorsement. On October 8, 2020, payments company Square announced it had purchased $50 million worth of Bitcoin, representing approximately 1% of its total assets as of Q2 2020. Square, led by CEO Jack Dorsey, has been a vocal proponent of Bitcoin and had previously launched Bitcoin trading through its Cash App in 2018.
The combined signal from two of the world’s largest payment companies embracing Bitcoin within weeks of each other sent a powerful message to both retail and institutional investors: cryptocurrency was rapidly becoming a mainstream financial asset class.
Grayscale and Institutional Inflows Surge
Grayscale Investments’ Bitcoin Trust (GBTC) has been another key driver of demand. By mid-November 2020, GBTC’s assets under management reached approximately $10.8 billion, reflecting accelerating institutional appetite for Bitcoin exposure through regulated vehicles. Pantera Capital noted in its November 2020 Blockchain Letter that PayPal’s entry alone was already impacting Bitcoin supply, observing that the rate of new Bitcoin being purchased through the platform was significant relative to the amount of new Bitcoin being mined.
Macro Backdrop: Election Uncertainty and Stimulus Hopes
The broader macroeconomic environment in early November 2020 is also providing tailwinds for Bitcoin. The United States is heading into a contentious presidential election on November 3, with markets bracing for volatility. Meanwhile, expectations for additional fiscal stimulus and continued Federal Reserve monetary easing are boosting the appeal of inflation-resistant assets like Bitcoin.
Bitcoin’s fixed supply cap of 21 million coins, combined with its increasing correlation to “digital gold” narratives, has drawn comparisons from major financial institutions. J.P. Morgan, whose CEO Jamie Dimon once called Bitcoin a “fraud” in 2017, published an in-depth study in October 2020 comparing Bitcoin to gold and suggesting it could reach much higher valuations.
Why This Matters
November 2020 represents a turning point for Bitcoin adoption. With PayPal opening the door to 300 million users, Square allocating corporate treasury funds to BTC, and institutional vehicles like Grayscale seeing record inflows, the infrastructure for mainstream Bitcoin investment is rapidly falling into place. Bitcoin’s price action — rising from around $13,700 at the start of November to nearly $20,000 by month’s end — would ultimately validate the bullish thesis that institutional adoption creates supply-demand dynamics that push prices significantly higher. For investors watching from the sidelines, the message is clear: the largest financial companies in the world are no longer ignoring cryptocurrency.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry significant risk. Always conduct your own research before making investment decisions.
300 million PayPal users getting crypto access and people were still calling the rally a bubble. that was the institutional signal right there
conditional bitlicense though, not full access. took them another year+ to let people actually withdraw
The $13,700 break is huge, gdhd_pts. We’ve been range-bound for so long that people forgot what a real bull market feels like. If we hold this level, $20k is just a matter of weeks, not months.
$20k by end of november 2020 was aggressive but they actually nailed the timing. old comments aging like fine wine
paypal users could only buy and hold at first. no transfers, no self custody. but it got people in the door and thats what mattered
no transfers no self custody. literally just an IOU on PayPals database. but it got 300M people comfortable with the idea of holding crypto, which is what mattered
Square putting 1% of assets into BTC at that price. MicroStrategy a few months later. the dominoes were obvious in hindsight
Squares BTC purchase was the breadcrumb. MicroStrategy saw that and went all in a few months later. the corporate treasury FOMO started right here
Matej S., this PayPal news is the ultimate validation. We’ve spent years being told crypto was for criminals, and now the biggest payment processor in the world is letting retail buy in. This is the institutional floodgate opening.
Grayscale GBTC at $10.8B valuation was the backdoor for institutions who couldnt hold spot BTC. everyone focuses on PayPal but the real money came through trusts first