Bitcoin Payments: 1M Sellers, but Demand Still Lags

| crypto.news
Bitcoin payments infrastructure has expanded, but everyday customer demand remains weak, according to Block-backed development group Spiral. More than one million US merchants can accept Bitcoin through Square, and Lightning Network integrations have become easier. However, merchant availability does not show how many customers complete purchases or return to spend BTC, and Square’s Lightning checkout can pay merchants in dollars by default. Spiral says Bitcoin payments face barriers including price volatility, holders’ preference to save BTC, the steps required to acquire it and US tax rules that may treat spending crypto as a taxable disposal. Stablecoins offer a more predictable dollar value: Spiral estimates USDC makes up about 99% of payments through Coinbase’s x402 protocol. Recent integrations show continued development of Bitcoin payment infrastructure, not confirmed growth in consumer use. Block added Lightning support to x402 in September 2026, while Lightning Labs expanded access to its Wavelength agent-wallet service in October, initially capping balances at 300,000 satoshis. Spiral is seeking proposals for changes that could increase Bitcoin payments over the next five years, including shared payment rails, incentives and micropayments for digital services and AI applications. It recommends tracking completed sales, repeat buyers, transaction values and the asset actually spent. For traders, the report is a longer-term adoption signal, not an immediate price catalyst.
Neutral
The report does not announce a new Bitcoin product or policy change, and it provides no evidence of a material rise in completed payments or repeat use. As a result, the news is unlikely to alter BTC supply-demand conditions or market stability in the short term. Traders may view Square’s merchant reach and continuing Lightning integrations as supportive of Bitcoin’s long-term payment infrastructure, but adoption remains unproven and stablecoins currently have an advantage in predictable pricing. A more sustained bullish effect would likely require measurable growth in transaction volumes, repeat buyers and the share of purchases paid in BTC; without that evidence, any price response is likely to be limited.