While many experts predict that cryptocurrencies will revolutionize the financial world, digital currencies are still the subject of negative media attention. Fuelled in part by recent scandals and a perceived lack of stability, crypto has struggled to get off the ground and establish itself as a viable long-term payment method.
However, the recent announcement of a partnership between crypto platform Wirex and financial giant Visa has offered renewed hope for the beleaguered crypto industry, with the bitcoin price surging when the news broke. Is this a temporary fix or will Visa inspire a crypto bull market? Read on to find out.
Visa and Wirex Partnership
This week, crypto payments platform Wirex confirmed that it had entered into a long-term partnership with Visa. Under the terms of the deal, Wirex will become a member of Visa in the UK and the Asia-Pacific region, where it will be able to issue debit and prepaid cards that are crypto-equipped in more than 40 countries.
Wirex was the first company to develop a crypto-payment card, which allows users to purchase, store, sell, and spend a variety of different cryptocurrencies both online and at retail locations.
As a new member of Visa, Wirex will now be able to further develop and distribute crypto-focused products and services that are predicted to accelerate the integration of cryptocurrencies and digital assets with everyday life.
Speaking about the announcement, Visa Head of Digital Partnerships, Asia Pacific Matt Wood expressed an interest in bringing more payment options to Visa users. He said that connecting digital currencies with Visa’s network of merchants and banks will allow customers a wider range of payment options. The excitement around the situation was palpable as Wirex’s expansion into Asia Pacific would make it easier for crypto users to spend their coin amongst the millions of merchants that accept Visa.
So, good news for the crypto industry. Digital currencies have struggled for mainstream acceptance, so support from a globally recognised and trusted brand like Visa is certain to help.
How have the Markets Reacted?
Markets are unpredictable and often volatile; they react to both internal and external influences and can be notoriously difficult to forecast.
Bitcoin is the oldest and most well-known cryptocurrency, so it can often be used as an accurate barometer to measure the health of the wider crypto industry. When bitcoin does well, so do other coins. When it does badly, we see other coins perform poorly as well.
At the tail end of 2022, cryptocurrency exchange FTX collapsed. This made headline news around the world, with the founder accused of a range of fraud and money laundering crimes. The scandal had a serious impact on the crypto industry, it saw bitcoins price plummet, which in turn affected most other coins. What’s more, the FTX incident further eroded public trust in crypto technology. Cryptocurrencies were already viewed by some to be illegitimate and unsafe, with the FTX collapse only reinforcing these beliefs.
Bitcoin’s price has remained low since the end of last year, keeping the wider industry down with it. However, the recent Visa and Wirex news gave the market a much-needed boost. Since the announcement of the partnership, bitcoin’s price has risen by 9.86%.
Why has this happened? Perhaps the primary reason is that an established and reliable brand like Visa has worked to legitimize crypto by taking steps to work with the technology. This will have reassured investors that crypto is on its way to achieving mainstream integration and that it will survive recent scandals and setbacks.
Will Visa Inspire a Crypto Bull Market?
How far will the boost crypto has been given by Visa go? This positive market response could be temporary, or it could indicate the start of a sustained and substantial period of growth.
When a market is going through an extended and healthy growth period, this is what’s known as a bull market. Typically, a market is referred to as bullish when the market index rises by 20% or more. Bull markets can be triggered by a strong, booming economy and often happen when unemployment is low and investor confidence is high.
The opposite of a bull market is known as a bear market, which is when the stock market index falls by at least 20% after a period of strength. A bear market can be a perilous time for traders but can offer an opportunity for investors to purchase assets at a cut price.
Currently, the crypto industry is in the midst of a bear market, with prices down across the board after the highs of previous years. However, bear markets don’t last forever, and experts predict we could expect to see a bull market by the end of this year. Could Visa accelerate this process? It’s certainly possible, the partnership with Wirex will make crypto a far more attractive option for prospective investors and could kickstart a period of significant growth.
Conclusion
After what has been a tumultuous few months for bitcoin and crypto, the news of the Visa and Wirex partnership has been a welcome reprieve. It has turned what was a rather gloomy outlook into something more hopeful and should push crypto one step closer to mainstream acceptance and integration. Will Visa inspire a crypto bull market? It’s too early to tell, but the signs are certainly promising.